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EURJPY - Wave 5 Final Push? Time to Watch for Reversal

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🌀 EURJPY - Wave 5 Final Push? Time to Watch for Reversal 🚨 (Elliott Wave + AO Divergence + Fib Confluence)
📆 Date: May 19, 2025
📊 Pair: EUR/JPY
⏱️ Timeframe: 1H
🔍 Tools: Elliott Wave, Fibonacci Extension, Awesome Oscillator (AO)

🧠 Technical Breakdown
We are currently tracking a textbook Elliott Wave impulsive decline, with price forming a clean 5-wave structure to the downside. The pair now seems to be completing Wave (5) — and several strong signals suggest that a bullish reversal might be imminent.

🔢 Elliott Wave Count
✅ Wave (1) to (4) are already completed.

🔻 Wave (5) has broken below the 2.618 fib extension — which confirms an extended fifth wave.

📉 Current downside target zone lies between the 4.236 – 4.786 extensions:

4.236: ~161.796

4.786: ~161.275

This blue box zone (161.80 – 161.27) is now a high-probability completion area for Wave (5).

📈 Awesome Oscillator (AO) – Bullish Divergence Detected
AO shows a clear bullish divergence between Waves (3) and (5).

Momentum is fading on the bearish side while price makes a new low — classic signal of potential trend reversal.

🎯 Trade Plan: Wait for Confirmation
We’re not jumping in yet — but we’re close.

✅ What to Watch For:
Let price reach the 4.236–4.786 fib zone (at minimum 161.796).

Wait for a Break of Structure (BoS) — a clear break above a recent lower high (likely Wave 4).

On the retest or pullback, look for long entry setups such as:

Bullish engulfing candles

Pin bar rejection

MACD/AO flip

Trendline breakout retest

🎯 Targets
TP1: 162.80 – 163.50 (previous Wave 4 zone)

TP2: 50% – 61.8% retracement of Wave (5)

TP3: 164.40 – 165.20 (supply zone and structure confluence)

🛑 Stop Loss Idea
Place SL below the 4.786 extension (~161.27) or beneath the new low formed, depending on your entry type (aggressive vs conservative).

⚡ Summary
This setup brings multiple confluences together:
✅ Elliott Wave (5-wave completion)
✅ Fibonacci extension target zone
✅ AO bullish divergence
✅ Waiting for structure break for smart entry

💬 Let’s Talk
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🔔 Hit the alert — EURJPY is cooking something!

#EURJPY #ElliottWave #Forex #AO #BullishDivergence #FibExtension #PriceAction #WaveAnalysis #TradingSetup #ForexSignals

Feragatname

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