* euro / Yen approaches December low
* CADJPY, AUDJPY, and NZDJPY rallies expected
The decline from just above 131 may be the next bear leg within the drop from 170. The advance from the low is in 3 waves, confirming that the larger trend is down. Expect a bounce from near support (December 5th low at 115.85). Potential resistance begins at 119.77
The GBPJPY reached an all-time low yesterday. Near term, a 4th wave correction within the decline from 141.68 is underway and could reach 133 prior to formation of a top. 133 is the 38.2% of 140.15-128.79 and former congestion from 1/12
Last week, I wrote that a head and shoulders formation is evident on intraday charts. The weight of evidence favors weakness. Support begins at 80.20. The CHFJPY has declined and the drop is unfolding in an impulsive fashion. Short term, the decline from 87.09 is nearing the end of wave iii. A small correction in wave iv should begin soon and initial resistance is at 80.79.
The CADJPY has plunged from last week's high. The drop is a clear 5 wave decline, indicating that a correction, back to at least 74.21, should begin soon.
The AUDJPY decline looks like the CADJPY decline (and the NZDJPY). The drop from 68.33 is in 5 waves, indicating with a high probability that the next move is up. Resistance begins at 61.21. Divergence with RSI on the 60 minute chart highlights the maturity of the decline.
There really is no difference between the analysis for the CADJPY, AUDJPY, and NZDJPY. The drop from 56.39 is in 5 waves, indicating with a high probability that the next move is up. Resistance begins at 50.31. Divergence with RSI on the 60 minute chart highlights the maturity of the decline.