Elliott wave analysis of EUR/JPY and EUR/NZD

 EUR/JPY

As support at 120.75 could not protect the downside we knew, that a new low slightly below 120.08 was to be expected and that is exactly what we have seen. We are closing in on the bottom and we do see a clear loss of downside momentum, but at long as minor resistance at 120.78 and more importantly as long as resistance at 121.88 protects the upside we must accept slightly new lows. That said, at no time can a break below 118.73 be accepted as, that will invalidate my bullish count. A break above minor resistance at 120.78 will ease the downside pressure, but only a break above resistance at 121.80 will confirm that a bottom is in place for the next powerful rally higher.

EUR/NZD

We are now very close to my ideal target at 1.5209 and we should prepear our self for a major rally to begin soon. Short term I'm looking for minor resistance at 1.5309 to protect the upside for the last decline towards our ideal target at 1.5209 from where I expect the next major rally to take place. The long term upside for the coming rally is at least at 1.6602, but likely much higher. A break above minor resistance at 1.5309 will be the first good indication that a bottom is in place, while a break above 1.5427 and more importantly a break above 1.5627 is needed to confirm the bottom and confirm the next major rally higher.