EUR/JPY Possibly Entering Most Bearish Period


Commentary - If a longer term EURJPY decline is underway, then the pair is about to enter one of the strongest points of the decline; which is wave iii of 3 of C. This interpretation is favored as long as price is below 163.25. Potential resistance is at 161.95 as well as 162.34. The initial bearish objective is at 148.04 (167.73 - (168.94-149.25)).
Strategy – Get bearish near 161.78/162.34, against 163.25, target 148.20

Commentary – The EURCHF is in wave 5 down within a 5 wave bearish cycle from 1.6827. This 5th wave may be close to complete; wave 5 would equal wave 1 at 1.6292. Even if price does slip a bit further, expect a bounce to challenge at least 1.6489. Price has come under the 200 day SMA for the first time since August, indicating potential for a longer term trend change. The 200 day SMA is at 1.6456.
Strategy – Flat

Commentary – We have maintained a longer term bullish stance with the EURGBP, eventually expecting price to challenge the 2003 high at .7254. The rally from .6535 is in wave 3 and could possibly challenge the 161.8% extension of .6535-.6867/6679 at .7216 before a setback in wave 4.
Strategy – Take profit on long positions at .7200