EURJPY Daily Trade Setup
EURJPY Daily Trade Setup
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The EURJPY chart presents a constructive multi-timeframe bullish setup, supported by a constructive weekly Elliott Wave thesis on the higher timeframe. The weekly chart on the right shows price trending firmly higher within a rising channel, with the broader structure maintaining a clean sequence of higher highs and higher lows. From an Elliott Wave perspective, the advance appears to remain impulsive rather than exhausted, with the current consolidation likely representing a corrective pause within the broader bullish sequence. As long as price continues to hold above weekly channel support and the prior higher-low structure, the thesis remains that EURJPY is preparing for another upside leg toward the next Fibonacci extension zones.
On the H4 execution chart on the left, EURJPY is building a clear base above ascending trendline support after reclaiming the lower range. The recent consolidation appears to be forming a continuation structure, with price compressing beneath nearby resistance while maintaining a sequence of higher lows. This fits well with the weekly Elliott Wave view, as the H4 price action looks like a smaller corrective structure developing inside the larger bullish wave count. A short-term pullback or liquidity sweep into the rising support zone could therefore provide the next execution opportunity before continuation higher. The orange projection path suggests a potential dip, reclaim, and expansion phase, targeting the upper Fibonacci and channel resistance levels above.
The key bullish invalidation sits below the H4 ascending support and the recent major swing low. As long as EURJPY continues to hold that rising support structure, the broader thesis remains focused on upside continuation in line with the constructive weekly Elliott Wave count. A sustained break below the H4 higher-low base would weaken the execution setup and suggest a deeper retracement is underway, while a higher-timeframe break below weekly channel support would be required to challenge the broader bullish Elliott Wave thesis.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!