NZD/JPY and AUD/JPY are breaking down, together with US stocks. At the time of writing, DOW is down -1.5%, S&P 500 down -1.78% and NASDAQ even -2.5%.
NZD/JPY’s strong break of 77.96 resistance turned support should confirm that corrective pattern from 75.95 has completed with three waves up to 79.22. Deeper fall should now be seen through 75.95, to resume the whole decline from 82.49 to 61.8% projection of 82.49 to 75.95 from 79.22 at 75.17 next. On the upside, above 78.51 minor resistance will delay the bearish case.
AUD/JPY also follow and breaches 82.42 support turned resistance. Further downside acceleration will confirm the corrective rebound from 78.77 has completed with three waves up to 84.27. In this case, deeper fall would likely be seen through 78.77, to resume the pattern from 86.24 to 100% projection of 86.24 to 78.77 from 84.27 at 76.80. Meanwhile, above 83.34 minor resistance will mix up the outlook.
