Market Context

Following the completion of the 5-wave impulsive decline down to the 179.40 low, EUR/JPY has entered a corrective sequence. Price rallied sharply to form Wave (A) around 182.40, sweeping liquidity right inside the upper resistance/supply zone.

Technical Setup & Entry Rationale

Structure: Price reacted strongly off the upper zone (181.70 – 182.15) and delivered a clear Change of Character (CHoCH) on the 30-minute timeframe near 181.60.

Trade Setup: Short entry on the current retest of the supply block/CHoCH flip area.

Elliott Wave Context: Trading the corrective Wave (B) down leg before anticipating a potential reversal for Wave (C) back to the upside.

Trade Parameters

Pair: EUR/JPY (30M)

Bias: Bearish / Short

Entry Range: 181.50 – 181.65

Stop Loss: 181.85 (Above local swing high / supply zone upper boundary)

Take Profit: 180.35 (Targeting the lower support zone / Wave B termination area)

Risk/Reward Ratio: ~3.6:1

Execution & Risk Management

Once price approaches the target support zone around 180.35, partial profits will be taken, and the stop loss will be moved to breakeven to prepare for the potential Wave (C) bullish reversal off the demand zone. Keep risk fixed to standard account parameters.