FX.co ★ jerome82 | EUR/JPY

Analysis of the EUR/JPY cross-rate. Part 4. Conclusion. Prospects of a downward movement on the H1 chart. Analyzing the EUR/JPY currency pair on lower timeframes (H1 chart), we can see that the recent market decline has formed two possible interpretations. The first one is a descending zigzag ? . The second one is the beginning of a downward movement as the first wave (i), followed by a correction in the form of an "expanded flat" (ii). Both of these scenarios have approximately equal probabilities of development. Despite the uncertainty, Monday offers an excellent opportunity to open a short position. The level for setting a stop-loss will be very close - at the 185.52 mark.

Conclusion: as long as the critical level at 185.52 remains unbroken, the priority is given to the market collapse scenario.