We take a look at 1 hour price action of EURJPY from 142.47 (4.29.2014) peak. Using NEW Elliott Wave Theory, we don’t just count the waves but sequence of swings as well to get the right path. Decline from 142.47 can be sub-divided into 7 swings when drop to 139.84 completed wave A and recovery to 140.94 was wave B. Pair is now getting close to C = A target @ 138.29 with 1.236 x A ext just below @ 137.66. This is the area where we expect the corrective structure to complete and pair to turn higher for new highs above 142.47 or 3 waves higher to previous red B wave area. We don’t like selling the pair and favour buying dips to above area.
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