It finally seems as we are going to see the last part of the rally towards the ideal target near 134.47. Over the last week a small wave iv of v of 5 triangle has been developing and we have seen the start of the thrust towards the upside. Short term we are looking for support near 132.32 to protect the downside for a break above resistance at 132.77, which will open the upside for a continuation higher towards 133.54 and 134.47 as the ideal target. As I expect this to be the final rally higher, we should Work with stops in as close as possible and look for sings, that the entire rally since the 94.10 low is coming to and end.
As we saw a break below support at 1.5744, we saw a little detour to 1.5702 before we saw the next move higher. With the break above resistance at 1.5840 we should now see the upside pressure increase. We are looking for support at 1.5820 to protect the downside for a break above 1.5854, which will confirm the next test of resistance at 1.5924, but this time we should see a clear break above this resistance for a continuation higher towards 1.6481. However, if support at 1.5820 is broken it will delay the rally higher for a slightly deeper correction towards 1.5764 before the next rally higher.
EWS- I was seeing similar USDJPY -- 106.93-107.13 in a giant Bearish crab.
ReplyDeleteWhat's difficult to accept that only EURJPY has shown a real 4 wave/ 5 wave -- and it looks as if most of the other JPY pairs are still in Wave 4. the weekly EURJPY 2.61 is at 139.48- maybe a stretch from here- but I can't dismiss it- without seeing more wave 5's on other pairs
Hi Jeff,
ReplyDeleteI know what you mean, when you say it's hard to dismiss EUR/JPY could move higher towards 139.48.
I agree with you, that a move towards 139.48 is a possiblity, but I have no problem with seeing EUR/JPY topping near 134.47 in wave 1 and wave 2 taking us Down to 118.73 before the next powerful rally higher in wave 3.
It would just be a question of USD/JPY peaking near 107 in red wave iii and either EUR/USD Falling or not rallying as fast as USD/JPY drops.
I never try to figure out how EUR/USD and USD/JPY will move in relation to each other. I have tried that approche many times and I have always lost that game. Therefore I stick to what I know and that's where we are in EUR/JPY and that says wave 5 big time.
Kind regards
EWS
Hi EWS i have been tracking USD/ZAR for a long time and has been riseing from 6.5390 since May 2011 to presant time with i ii iii iv v"s and corrections in to (i) (ii) (iii) (iv) and looks like coming up to (v) projected at 9.6796 could you please take a look as i am vewing this pair for a major correction and your thoughts would be greatly appreciated
ReplyDeleteThanks in advance and Best Regards jt
Hi JT,
DeleteJust a brief note now, but I would look more into it later today.
I'm not sure you are in wave (v). You could very well be looking at wave iii of 3 and that means acceleration higher in a very powerful rally very soon. I would not at all be surprised to see 10.50 tested.
In the bigger Picture it's a question if you are in some kind of triangle? But I will look into that later.
Kind regards
EWS