Japanese Crosses Complete First Leg of Correction...
CADJPY
CHFJPY
NZDJPY
Commentary – While it remains likely that a long term decline is underway, we do expect a sharper rally near term. The rally from 101.82 to 107.50 is in 5 waves, indicating that at least another 5 wave rally will occur. The question is whether or not that rally is underway now or whether an expanded flat is unfolding before the expected rally. Subjectively speaking, we favor a drop below 104.84 to complete an expanded flat before a rally target 110.00/50.
Strategy – Get bullish AFTER a drop below 104.84, against 101.82, target TBD (probably near 110.00)
Keep up with the action in the Yen crosses at our recently updated Yen Currency Room
Commentary – It is possible that a large triangle is unfolding from the July high at 101.85. Under this scenario, wave d of the triangle is underway towards 99.00/50 before a larger setback in wave e. The CHFJPY should remain in a range for the next few months or longer.
Strategy – Exit bearish position (flat)
Commentary – We were looking for a big decline and we did get one -- to 78.16 -- but the NZDJPY came right back, just as fast as it fell. Given that we are expecting a larger correction in the USDJPY (towards 108.50) and that there appears to be 5 waves up in the NZDUSD near term; bullish potential is great. A decline back towards structural support at 81.30 near term is probable though as the pair faces resistance from a fibo level and former congestion.
Strategy – Bearish, against 83.49, target 81.00
| Monday | Tuesday | Wednesday | Thursday | Friday |
| EURJPY | CADJPY | AUDCAD | GBPJPY | EURAUD |
| EURCHF | CHFJPY | AUDJPY | GBPCHF | EURCAD |
| EURGBP | NZDJPY | AUDNZD | GBPAUD | EURNZD |
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