The USDCAD long entry (presented last Wednesday) was missed by 12 pips. If you follow the Technicals though, then you are probably on track with the USDCAD. We have been following the EURJPY very closely, which is this week’s idea.
In the EURJPY, a wave 2 top might be in place at today’s high. The EURJPY touched a resistance line that dates to October AND the other side of what was once a support line (which dates back to 2000). The count tells us that a 3rd of C is expected or possibly underway now. Remember, this point in wave structure is usually a vertical type of move. In other words, the EURJPY should fall off a cliff in the next few weeks. The target is not until below 149.25, but probably closer to 140. This bearish count remains intact as long as price is below 167.73.
This is a very short term chart (5 min), but it does confirm our longer term bias. There 5 waves down from 164.97, which supports a bearish bias. As long as price remains below 165, the immediate bearish bias is intact. As mentioned though in the previous chart, 167.73 is the bearish ‘line in the sand’. If the stop is hit, then we’ll try again closer to 167.73. This is a short term idea that could turn into a longer term idea, which is why the target is TBD (to be determined).
