Trend is bullish in four Hours Chart. Critical support is present at 119.45 price level. The price of EUR/JPY currency pair moved up and we got a bullish Wave iii leg. Now, I expect a top in price action and market is going to fall down to print a short term bearish pull back – Wave iv. Wave iv which is most likely going to be a sideways corrective pattern – Flat or Triangle.
A good suggestion is to wait for the Wave iv to first appear and then look for a buy trade to join an up trend. However; if market closes a bearish candlestick below 119.45 important support area then bullish trend will end. In such case, I will stop myself from trading and re-analyze the price chart of EUR/JPY currency pair.
This post first appeared on FX Instructor Forex Blog - For Traders, By Traders, please read the originial post: here