I'm currently looking for a break below minor support at 125.21 and more importantly below support at 124.77 to confirm the next move lower in wave c of 4. This next move lower should be quite powerful and will likely reach 123.79 quickly once we break below 125.21. However, my longer term target for wave c is at 117.24, but we must expect, that strong support at 120.71 will put up a real fight. Short term we are looking for resistance at 125.97 to protect the upside for a break below 125.50. If however, we break above 125.97 resistance at 126.57 should do the job and protect the upside otherwise we will likely have to reevaluate our count.
We have seen the expected move lower towards strong support at 1.5750. As can be seen in the chart above, the decline from 1.6359 is clearly corrective in character and once this decline comes to an end we will likely seen a fast rally towards the upside. However, for now we should keep our focus towards the downside for a move closer to 1.5750. Short term we will likely see a little rally towards 1.5918 before the next decline lower towards 1.5790 and 1.5750.
Hello, Luv the Blog, extremely informative. My question if you dont mind is Why 117 for EJ ? If the A and B are correct, then a c wave to 117 seems a bit steep. Is'nt the c wave a proportion of the A wave? Why is 117 the ideal target for wave C?
ReplyDeleteThanks, keep up the great work!!
Duane
Hi Duane,
ReplyDeleteThank you very much.
The reason why I favor 117.24 as my ideal target for wave 4 in EUR/JPY is, that it both marks the 38.2% correction-target of wave 3 and at the same time marks the bottom of wave iv of 3 (wave four of one lessor degree). This is two very common targets for a fourth wave.
Yes wave C of 4 would be quite steep if it had to go all the way down to 117.24, but if it does it would relate to wave A in being just over 2 times longer than wave A, which is not that rare. However we might see a combination of zig-zags doing the job. There is no way of telling how we get down there, but the odds does favor that we do.
Kind regards
EWS
Thanks for your response, makes sense now!
ReplyDelete