Guest Commentary: An Excellent Risk/Return for EURJPY Again!
* Although we remain longer term bearish EURJPY for an eventual break to new lows, the decline appears to be complete in the short term.
As we have been highlighting in the longer term perspectives, this downtrend has taken shape with a series of 3 wave declines we have tagged as the Spiral Analogy.
Although we have fallen slightly short of the ideal C = 161.8 percent of the A wave target of 96.00 the decline to 96.15 completes a 5 wave trend sequence from the interim 101.40 B wave peak.
Thus we would expect pressure on this 96.15 to 95.60 support area to be absorbed for an erratic upside correction with the potential to clear the recent 97.20 peak to confirm at least a short term low but probably a rally to overcome broader down channel resistance and the 98.30 pivot point that projects another test of the recent 101.60 peak.
Only below secondary 95.20 support at this stage would inject downside momentum to match the initial 101.60 to 98.30 low or a drop to about 93.90.
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