The EUR/JPY will probably test the Fibonacci levels of wave 2 vs 1, which are expected to act as potential support. A break below the 100% Fibonacci level would invalidate the current wave 1-2 (pink) outlook whereas a bullish break above the resistance trend lines could confirm the end wave 2 (pink) and start of wave 5 (purple).
The EUR/JPY has made a bullish ABC (blue) zigzag within a wave X (purple) after price broke below the multiple support trend lines (dotted green). The bearish impulse is probably a wave 3 (green) which means that the current pullback could be a wave 4 (green), which typically sees a shallow retracement towards the 23.6-50% Fibonacci levels. The next push could complete a wave 5 (green) within wave A (blue), after which a wave B/C (blue) still remains.
