Potential short on EURJPY

11 thg 8, 2022As you can see price has been giving us bullish price action which in turn has created an ascending channel. If my Elliot wave counting is to be assumed as correct we could see price start to create its final bullish wave before giving us a bearish reversal. If so, price could potentially rally to the 144.303 level. If price rejects this level as resistance we could see price retrace towards our trendline support, giving us a retest and potentially breakout to the downside. If price were to breakout, we could see the EURJPY fall to 124.577. However, if price were to break past our key level of market structure at 144.303, and hold it as support this would invalidate our trade as we could expect price to continue to push to the upside for a significant period of time.