Euro/Yen Sets Up For Bears...Again

We exited last Wednesday's EURJPY short at 161.15 (exit point was published at DailyFX+ on Tuesday). We wish to re-enter the trade now.

This is an updated daily chart. The resistance line that dates to October AND the other side of what was once a support line (which dates back to 2000) was evidence to us last Wednesday that a wave 2 top was either in place or very close to in place. As it turned out, the high was last Wednesday. Remember, the count tells us that a 3rd of C is expected. In other words, the EURJPY should fall hard. The ultimate target is not until below 149.25, but probably closer to 140.

Near term, small degree 1st and 2nd waves are complete at 163.87. The down-up sequence since then is most likely waves i and ii of 3. A short term trendline supports a bearish bias below 163.

DailyFX

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