⬤ EUR/JPY dropped after losing steam near recent highs and landed right in a key support zone that Elliott Wave traders have been watching. Price hit the blue box area on the hourly chart — a spot known for strong reactions. The pullback was clean and controlled, stalling inside this zone instead of punching through lower.
⬤ The chart structure shows this dip is just a correction inside a bigger bullish move. Elliott Wave labels mark the pullback as a corrective wave, not a reversal. Price came down into the blue box near the equal-legs target and Fibonacci zone, where selling pressure faded and the market started stabilizing. The chart clearly states selling isn't advised here, meaning the market is bouncing off support rather than breaking down.
⬤ The wider Elliott Wave count suggests EUR/JPY stays bullish as long as it holds above the invalidation level marked on the chart. The right-side projection points to more upside once this correction wraps up. Recent price action backs this up — the market respected the support zone without breaking the key levels that would kill the bullish outlook.
⬤ This matters for the broader currency market because EUR/JPY reflects shifts in euro versus yen strength and overall risk appetite. When price holds at a well-defined technical support like this, it shows real demand underneath. As EUR/JPY trades out of the blue box area, traders will be watching closely for confirmation that the rally is back on, with price behavior here shaping what happens next.
