Eur/Jpy Bullish Retracement Probable

In July EURJPY completed a multiyear rally and began a correction that has likely reached a w.5 low (= W.1 or A) in both timeframes. Once the low is confirmed in the daily timeframe, price is likely to correct 50-62%.

Multiple-Timeframe Momentum: Bullish

The bullish weekly stochastic reflects a strong upward bias, with prices expected to move higher over the next few weeks. The imminent bullish reversal on the daily stochastic indicates that prices are likely to move higher over the next few days.

Implications: Imminent Rally

The confluence of bullish momentum, price, and pattern across timeframes suggests that EURJPY has reached a W.1 or A low and will likely move higher over the next week or two.

A bullish reversal on the daily stochastic and a close above 148.69 (the minor swing high) should be followed by a rally to 156.97-160.03.

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