EUR/JPY: How Much Further Can Price Sink?

Weekly chart:

EUR/JPY has some very eventful times behind it, and presumably also ahead of it. The last high occurred in December 2014 and was located at about 150 JPY. Then came the crash, and interrupted by a temporary recovery that reached to 141.05 JPY, the price most recently only came to a standstill again at 115.03 JPY.

From the perspective of the medium trend, the price is now far into the movement, so that we can reckon with a recovery soon. The target of a recovery such as this would be located at the penultimate point two at 126.09 JPY.

EUR/JPY Weekly Chart

Daily chart:

This timeframe is showing us an extremely mature trend with its fifth movement in the medium trend size. The next correction is the sixth in a row, meaning that we can expect a larger recovery. The target of this correction would be the red zone. This scenario is being supported by emerging pergences in the RSI.

However, this chart image will only become really bullish with a break of the trend at 128.221 JPY. Until then, there is still a chance that significant setbacks could occur.

EUR/JPY Daily Chart

Hourly chart:

When Charles Dow presented his theory, he drew attention to the possibility that the three trends named by him could definitely be opposed. In the EUR/JPY we have just such a situation. The weekly and daily charts are clearly in the downtrend; the hourly chart is already showing the first signs of a recovery in the small trend.

However, if one takes the above-mentioned thoughts and inserts them into the hourly chart, a more long-term long opportunity could definitely become available here.

EUR/JPY Hourly Chart

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