There should be no doubt in anybodies mind, that the decline from the 127.70 high is corrective. The structure is overlapping , it is slow and it is confined within the boarders of the channel. That said we are still missing wave c down in the second zig-zag correction, therefore I'm looking for one last decline down to at least 121.26, where wave 4 will have corrected 23.6% of wave 3. However, a more normal corrective target would be at 117.28, where wave 4 will have corrected 38.2% of wave 3. For the short term I'm expecting minor support near 123.62 for a minor rally towards 124.57 and maybe even towards 124.82 before the next powerful decline to below 123.07 and more importantly below 122.55 confirming the decline towards 121,26.
My call for a decline to 1.5682 worked out perfectly, as we saw a decline to 1.5686 followed by the expected rally. I'm still look for a test of strong resistance near 1.5849 before wave c down is ready to take over. That said, a break below 1.5746 will be the first warning, that wave c down to 1.5467 and more likely 1.5176 is under way. A break below support at 1.5701 will confirm that wave c has taken over for the next powerful decline in this expanded ending diagonal.
Hi EWS how come sometimes we get these big gaps in price when a new week starts and is this a clue of what direction price may go.
ReplyDeleteBest Regards jt
Hi JT,
ReplyDeleteThere was a report in early Far East trading, that the new Governor of BOJ will be Haruhiko Kuroda. He backs Prime Minister Abe's policy of a weaker JPY and that likely caused the gap in early trading.
You can not take a gap as a clue of what direction the price will go. In this case we saw a gap towards the upside, but as we still miss wave c down of the second zig-zag.
An other thing to keep in mind is, that most gaps in the currency market is closed almost immidiately and if is the case here too we should at least see a decline down to 123.28, but I think we will see more downside action closer to 121.26 and likly even lower before the next rally in wave 5 sets in.
Kind regards
EWS
Thanks for that EWS have a great day talk soon
ReplyDeletejt
Hi EWS , what can you say about GBP/JPY?Thanks in advance, greetings!!!
ReplyDeleteThe trend in eurjpy is so strong maybe this correction didnt reach 23% !!
ReplyDeleteHi Zink,
ReplyDeleteI could be, but then we need a break above 125.90 to confirm that is the case.
I'm still in favore of one more decline below 122.26, but the most important think is, that we know when we are wrong.
Kind regards
EWS
Hi Diversanta,
ReplyDeleteI have made a new post about my view of GBP/JPY.
Kind regards
EWS
Just got to say this EWS you are one of the best wavers around nailed it again
ReplyDeletebest regards jt