Elliott wave analysis of EUR/JPY and EUR/NZD

 EUR/JPY

The blue wave ii correction turned out to be an expanded flat correction as we saw the low of wave b at 129.33 (below the low of wave a) and the high of wave c at 130.79 (above the top of wave a). As long as support at 129.93 and more importantly support at 129.33 protects the downside, the correction could be more complex, than we already has seen. However, at this point I do not expect a more complex correction and will be looking for signs that blue wave iii is developing. The first sign will be a break below 129.93 and confirmation upon a break below 129.33, which will indicate that blue wave iii is indeed developing. The first target for blue wave iii will be at 126.07, where blue wave iii will be 1.618 times blue wave i. After an expanded flat correction we should always expect an extended impulsive wave to follow. As said, the risk is a more complex wave ii correction, which will be the case if support at 129.93 protects the downside for a break above 130.79, which would call for a move higher towards 131.17 - 131.36, but that is not my preferred count at this point.

EUR/NZD

We only saw the minimum correction to 1.6572 before the next rally pushed above the top of red wave i and confirmed that red wave iii is developing. Ideally support at 1.6634 now will protect the downside for a break above 1.6722 indicating the next powerful rally higher toward at least 1.6882 and long term much higher towards 1.7326. However, if support at 1.6634 breaks, then we will have consider the rally of the 1.6572 low as part of an complex correction and look for a continuation down to at least 1.6572 and likely lower towards 1.6477 before red wave iii will be ready to take over.