Elliott wave analysis of EUR/JPY and EUR/NZD

 EUR/JPY

Today's Support and Resistance Levels:

R3: 130.11

R2: 129.88

R1: 129.69

Current Spot: 129.50

S1: 129.14

S2: 128.89

S3: 128.54

Technical Summary:

The correction I expected yesterday became slightly bigger, than first anticipated. I expected a correction towards 130.40, but the high came in at 130.73. However, the decline from 131.97 to 129.80 was a clear five wave pattern (wave i of blue wave iii) which called for more downside action once the correction was over (wave ii of blue wave iii). We have now entered the part of the decline from 131.97, which is likely to be the strongest. I'm looking for a decline to at least 128.54, but this decline will likely extend lower towards 127.20 before wave iii of blue wave iii is over. Short term we are looking for resistance at 129.69 and maybe 129.86 to protect the upside for a break below 129.14 towards 128.54.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6987

R2: 1.6946

R1: 1.6883

Current Spot: 1.6848

S1: 1.6799

S2: 1.6771 (top of blue wave i - Break invalidates the bullish count)

S3: 1.6720

Technical Summary:

I'm still looking for important support at 1.6771 (top of blue wave i) to protect the downside for a break above 1.6883 and more important a break above 1.6946, which confirms that blue wave iv is over and that blue wave v higher is developing for a rally towards at least 1.7166. Longer term I'm looking for a test of 1.7326 as the target for wave iii. However, if important support at 1.6771 is taken out, that would invalidate our bullish count and call for a new decline towards 1.6225 in a flat correction.