We are still in wave ii of c and I do expect it to move higher towards 131.17, where wave ii will have corrected 50% of wave i, but I would not be surprised to see a 61.8% correction of wave i, which would call for a rally towards 131.54, before wave iii takes over for a powerful decline. I will expect wave iii of c to be an extended wave and that would call for a decline towards 126.07 if a 50% correction turns out to be enough. Short term a break above 130.31 will indicate, that wave c of the correction is under way towards 131.17 and maybe 131.54. Only a direct break below 129.59 will indicate, that wave iii is already has taken over.
With an almost perfect test of strong resistance at 1.6686 (the high has been 1.6674) I think that a correction of this red wave i towards 1.6577 and likely deeper towards 1.6543 would be appropriate. However I can make a case, where we will not see a correction of that magnitude and if this is the case we will see a direct break above 1.6649 and more importantly a break above 1.6686 calling for a continuation higher towards 1.6762 and 1.6818 on the way towards 1.7326, which I believe will be the target for black wave iii.
Hi EWS,
ReplyDeleteFor eurjpy break below 129.59 It's possible reach to 129 the bound back to 131?
Hi Juan,
ReplyDeleteYes if we are looking at an expanded flat correction, the b-wave should ideally end near 129.20 and then wave c higher towards 131.05, but I would not bet on that outcome.
Kind regards
EWS