EUR/JPY continues to present a clear risk of a larger‑degree correction against the cycle that began at the February 2025 low. The internal structure of this pullback is forming as a double three, which is consistent with the broader corrective tone in the cross. The decline to 179.37 completed wave (W), and the subsequent advance in wave (X) reached 186.04. That pivot now serves as the key level that defines the corrective sequence. With wave (X) in place, wave (Y) has started to unfold as a zigzag. Down from the wave (X) peak, wave ((i)) ended at 184.91, and the recovery in wave ((ii)) reached 185.98.
The pair has since resumed lower in wave ((iii)), and the internal form shows a nested impulsive decline. Down from wave ((ii)), wave (i) ended at 183.61, followed by a modest rally in wave (ii) that reached 184.20. The move in wave (iii) extended to 180.51 and reinforced the impulsive character of the sequence. A wave (iv) rally is now in progress as the market works to correct the cycle from the September 2 high. This bounce should remain corrective and is expected to unfold in either three or seven swings.
As long as the 186.04 pivot holds, the broader expectation favors a failure in the current rally. That outcome would allow the pair to resume lower and complete wave (Y) within the larger‑degree correction.
EUR/JPY 60 minute Elliott Wave chart
EUR/JPY Elliott Wave [Video]
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