EURJPY is close to breaking above the previous high on June 1, 2021 at 134.12. A break above that level should create a bullish sequence from May 2020 low favoring further upside. Near term, cycle from March 7, 2022 low is in progress as a 5 waves impulse Elliott Wave structure. Up from March 7, wave 1 ended at 129.04 and pullback in wave 2 ended at 127.40. Pair extends higher in wave 3 with internal subdivision as another impulse in lesser degree. Up from wave 2, wave ((i)) ended at 130.03 and pullback in wave ((ii)) ended at 129.27. Pair then extends higher in wave ((iii)) towards 131.90 and dips in wave ((iv)) ended at 131.16. The last leg wave ((v)) ended at 133.89 which also ended wave 3. Pullback in wave 4 ended at 132.29.
Near term, expect pair to continue higher within wave 5 while pivot at 127.48 low stays intact. Potential target for wave 5 comes at 123.6 – 161.8 inverse Fibonacci retracement at 134.2 – 134.9 before pair ends wave (1). Note that it can extend higher than this area, but this is one possible way to measure potential target for wave 5. Once wave 5 completes, pair should do larger wave (2) pullback to correct cycle from March 7 low before the rally resumes. Pair should continue to stay supported in larger degree and dips should continue to find support in 3, 7, or 11 swing as far as March 7 low pivot (124.39) stays intact.