This is an update to the NZDJPY article from Wednesday in which we wrote that " the Dow broke its November 2007 low yesterday and the August 2007 low is less than 100 points away. If that level (12,518 to be exact) gives way, then the Dow could fall apart. In the FX market, the same can be said for the Yen crosses; especially NZDJPY." The Dow did come under that low and continues to look vulnerable.
The chart above is from Wednesday. We wrote then that “the decline from 97.74 to 74.25 is considered wave A within a large A-B-C correction from 97.74. A triangle may be in its final stages as wave B now. Fibonacci measurements suggest that resistance should be strong in the 85.40-.86.20 zone. The bias remains bearish as long as price is below 88.21.”
This is an updated chart. As you can see, wave e of the triangle and therefore larger wave B is very close to complete. Probability is high that the larger C wave decline, expected to result in a drop to about 68.00, will begin soon.
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