Yen Crosses: Significant Lows in Place?

On the daily, it is possible to count 5 waves down in the EURJPY from 170.  Since the low at 113.59, the EURJPY has rallied in what looks like 5 waves and is probably wave A of a correction and traded sideways in classic B wave style (B waves are often choppy).  From here, wave C is expected to end above 131.13.  A recent magazine cover suggests a turning point.

The GBPJPY trend remains forcefully down although there are signs of at least a short term recovery.  From 148.69, the GBPJPY has fallen in 5 waves, therefore a move back to at least former resistance near 141 is likely.  A larger recovery is also an option as the mentioned 5 wave drop could have completed a larger decline as well.

CHFJPY is putting to test the November low today.  The trend here is also clearly down as long as price is below the resistance line that is drawn off of the September, October, and November highs.  A move above there would be the first sign of a reversal.     

The CADJPY pattern is bullish and price should remain above 72.10.  From the October low, the pair traced out a 5 wave rally and the decline from the conclusion of that rally is corrective in nature; which confirms that the larger trend is up. 

The rally from 55.01 in the AUDJPY is viewed as wave a of 4.  Wave b of 4 is most likely complete at 56.83.  Strength is expected to accelerate in wave c of 4 and end above 70.58.  74.58 is potential resistance.

An expanded flat may be unfolding in the NZDJPY from the October low.  Since the October low, there are 3 waves up from 49.22 and 3 waves down to 48.62.  Holding above 48.62 keeps the expanded flat pattern on track, in which wave C is underway to above 61.61.

Jamie Saettele writes Forex Technicals: The Day Ahead, Monday-Thursday (published 6-7 pm EST), Daily Technicals  every weekday morning (9-10 am EST), COT analysis (published Monday mornings), and analysis of currency crosses throughout the week.  He is also the author of Sentiment in the Forex Market.