EUR/JPY
The odds still favor, that the X-wave did terminate with the test of 121.83 yesterday, but we still need a break below 120.40 to confirm, that the third and last zig-zag combination is unfolding. For the short term I'm looking for resistance at 121.48 to protect the upside for a break below 120.81 and of cause more importantly a break below 120.40, which confirms, that the last decline since the 127.70 high is unfolding for a move down to my ideal target at 117.28, where wave 4 will have corrected 38.2% of wave 3. That said, any break above 121.48 will delay the downside pressure for one last push higher to 122.74 before the next decline sets in.
I'm looking for a very powerful decline unfolding any time soon now. A break below 1.5776 will likely be the catalysts for for this decline, until we break below 1.5776 will must accept a more or less directionless trading between 1.5776 and 1.5847, but once support at 1.5776 gives away we should be looking for a decline to at least 1.5638 and will not be surprised to see this level break without a fight for a continuation lower towards 1.5509. That said, we must be aware of the possibility for a move above 1.5847, but it will likely only be to 1.5867 before the downside pressure takes over again.
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