Elliott wave analysis of EUR/JPY and EUR/NZD

 EUR/JPY

There was no time for one last minor rally higher yesterday, which means that wave i of 5 ended at 126.04 and wave ii of 5 currently is developing. The minimum we expect of wave ii is to reach the bottom of wave four of one lessor degree, which is at 123.80, but the decline in wave ii of 5 could be deeper. A correction towards the 50% corrective target at 122.62 or even down to the 61.8% corrective target at 121.82 should not be ruled out, but the Market seems to be very impatient and therefore we should not expect to much of this correction. Once this correction is over we should expect a very powerful rally higher towards at least 130.72, but more likely we will see it move higher towards 134.58.

EUR/NZD

I'm still looking for resistance at 1.5832 and more importantly resistance at 1.5878 to protect the upside for a break below support at 1.5767 and more importantly support at 1.5718, which will call for a test of the triangle support-line at 1.5600. A break below the support-line will open up the downside for the final thrust lower towards 1.5390 and likely even lower towards 1.5200 before the entire correction from early September 2012 finally comes to an end. That said, we should be aware that e-waves of triangle can fall short of there ideal targets and a break above 1.5878 will be a first warning that this is the case here.