Japanese Crosses Complete First Leg of Correction…
CADJPY
CHFJPY
NZDJPY
[B]Commentary[/B] – While it remains likely that a long term decline is underway, we do expect a sharper rally near term. The rally from 101.82 to 107.50 is in 5 waves, indicating that at least another 5 wave rally will occur. The question is whether or not that rally is underway now or whether an expanded flat is unfolding before the expected rally. Subjectively speaking, we favor a drop below 104.84 to complete an expanded flat before a rally target 110.00/50.
[B]Strategy – [/B]Get bullish AFTER a drop below 104.84, against 101.82, target TBD (probably near 110.00)
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[B]Commentary[/B] – It is possible that a large triangle is unfolding from the July high at 101.85. Under this scenario, wave d of the triangle is underway towards 99.00/50 before a larger setback in wave e. The CHFJPY should remain in a range for the next few months or longer.
[B]Strategy – [/B]Exit bearish position (flat)[B][/B]
[B]
[/B]
[B]Commentary[/B] – We were looking for a big decline and we did get one – to 78.16 – but the NZDJPY came right back, just as fast as it fell. Given that we are expecting a larger correction in the USDJPY (towards 108.50) and that there appears to be 5 waves up in the NZDUSD near term; bullish potential is great. A decline back towards structural support at 81.30 near term is probable though as the pair faces resistance from a fibo level and former congestion.
[B]Strategy –[/B] Bearish, against 83.49, target 81.00
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EURJPY
CADJPY
AUDCAD
GBPJPY
EURAUD
EURCHF
CHFJPY
AUDJPY
GBPCHF
EURCAD
EURGBP
NZDJPY
AUDNZD
GBPAUD
EURNZD
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