Elliott Wave Analysis on EUR/JPY and EUR/NZD

 EUR/JPY

As we have seen a 23.6% retracement of wave i of 3 we could have seen the end of wave ii. However, it would take a break above 107.08 to ease the downside pressure and more importantly we need a break above 107.67 to confirm the bottom and at the same time indicate that wave iii of 3 is developing. That said, we shall remember that we are in wave 3 and correction during wave 3 tend to be small and even sub-normal. As long as we have not broken above 106.67 we must accept, that we could see a deeper correction of wave i down to the 38.2% retracement target at 105.04 before wave ii is finally over.

EUR/NZD

I'm still looking for wave ii to end soon as the room towards the downside is becoming very limited. Therefore I'm looking for a reversal above minor resistance at 1.5543 as the first minor clue, that a bottom is in place. However I would like to see a break above 1.5602 before I feel more confident that wave ii is indeed over and wave iii of 3 is developing towards 1.5927 and higher. The good thing is, that we know exactly where our invalidation point is. A break below 1.5390 will invalidate our count and call for a much deeper decline towards the bottom at 149.67 and maybe even lower.