EURJPY Setting Up For a Big Fall

EURJPY
EURCHF
EURGBP


Commentary - In looking at all of the price action since the July high of 168.94; one thing is obvious; the decline from 168.94 to 149.25 is in 3 waves and therefore a correction or just part of a larger correction. Additional evidence supports bulls as the rally from 149.25-167.64 is in 5 waves (if we allow for wave 5 to be truncated). The decline into 158.68 was also corrective (3 waves), although it was sharp. We wrote last week that “the EURJPY is expected to push through 164.31 in order to complete larger B of an A-B-C from 167.64. 165.00 is a possible reversal point.” The pair is just pushed through this level this morning. 165.36 is potential resistance (100% ext. of 159.36-163.82/160.90).
Strategy – Get bearish near 165.35, against 167.64, target 156.00


Commentary – We wrote last week that “the advance from 1.6298-1.6588 is probably wave a in an a-b-c correction. Therefore, expect a corrextive decline in wave b of the correction before wave c takes the EURCHF to at least 1.6625 (61.8% of previous decline) and maybe 1.6713 (78.6%).” Wave b may be complete at 1.6450 and wave c is underway now towards the 61.8% at 1.6625. The next level of resistance would be the 78.6% at 1.6713 and where c = a at 1.6739.
Strategy – Flat


Commentary – We wrote last week that “wave 4 is either complete now or almost so at .7088. Price is expected to advance in wave 5 now and register a new high (above .7215).” The wave 4 low was in place at .7088 and the EURGBP exceeded .7215 as expected (.7240). A larger correction (wave 4 within the 5 wave bull from .6535) is underway now and could eventually test .7088. Expect a range bound EURGBP over the next few months.
Strategy – Flat