EUR/JPY
The 4-wave correction is developing nicely. Wave A of the simple zig-zag correction, that we are looking for ended at 116.47 and was followed by a minimum length wave B. This wave B only corrected 38.2% of wave a and ended at 118.20. With wave A and B in place we can calculate the most likely ending point for wave C, which is at 114.57, where wave C with equal wave A in length. Normally we expect wave 4 to be complex in its structure, but as we had a big flat wave 2, we expect wave 4 to be a simple zig-zag correction due to the Elliott Wave Principle of alternation. Once this wave 4 is over we are looking for the final move higher in the sequence from 94.10. The first target for this wave final wave is at 124.55, if we do see wave 4 ending at 114.57.
EUR/NZD
I do think that blue wave ii have terminated or is very close to terminate, however a break above 1.5868 is needed to confirm that for the next rally higher towards resistance at 1.5977, which should be broken without much trouble next time, for a continuation higher towards 1.6267, which is the minimum target for blue wave iii. That said, as long as minor resistance at 1.5868 is protecting the upside, there is a risk of a slightly deeper correction towards 1.5742 before this blue wave ii correction finally terminates and blue wave iii takes over.
Hi Elliott!
ReplyDeleteThank you very much for your analysis, I believe they are great!
Regarding EURJPY, I see 118,66 at this moment, does it mean we are still on wave B and wave C target needs to be re-calculated?
Please excuse my lack of knowledge, I am quite a beginner on this matter.
Many thanks!
its very rarely seen move because now wave b of a zigzag has entered into 61.8% area and if it reached more than 119.30 then it might have corrected more than 80% of the move which means there would a possibility of flat correction or you still think wave 3 is still on its wave.
ReplyDeleteBut How many times have you seen an extended wave 3 and and triangle in wave B of a zigzag correction and I wonder if there a possibility here. But usd/jpy is also entered the same area as eur/yen trading together the same
Regards
Aman
Hi Potxotxo and Aman,
ReplyDeleteThe move above 118.66 is very unexpected, as it hasn't even corrected to the absolut minimum corrective target at 115,45 (the 23.6% Fibonacci target). That could mean we are looking at an X-wave, which should be followed by a new decline once its over. IF it's an X-wave is should not go beyond the top at 120.12.
A break above 120.12 will change the count towards a finished wave 4 and call for the next rally higher in wave 5.
The other possible outcome is, that a triangle is forming, but it's way to early to tell.
So we have to go with the evidence we have at the moment.
Kind regards
EWS