Elliott wave analysis of EUR/JPY and EUR/NZD

EUR/JPY

 

As we saw a clear break above minor resistance at 114.51 we could have seen the bottom for wave 4. However, a break above important resistance at 115.55 is needed to confirm the bottom and a new rally higher towards 115.99 and beyond towards the 117.50 - 117.90 area as the next target. Short term I will be looking for minor resistance at 115.25 to protect the upside for a minor set-back towards 114.51 before the next rally higher to challenge important resistance at 115.55. The risk at this point is a break below 114.07, which would call for one last decline towards 113.24 before the next rally higher.

 



EUR/NZD

 

We are now close to the "Make it or Break it" point at 1.5445. From the EWO indicator I can see, that this market is becoming extremely oversold and at the same time has a possible Hidden Divergence, which means, that we can see a new bottom on the EWO Indicator, but not in the price-action. That said, this only becomes a valid signal if we break back above 1.5714. As long as resistance at 1.5714 protects the upside the risk is, that we will see further downside action, but at no point is a break below 1.5445 allowed, as that will invalidate the count above and call for a more bearish count. Only a break above resistance at 1.5714 will ease the downside pressure and call for a rally higher towards 1.5841 and the next target on the way higher.