German DAX
German DAX has three waves up at the moment from the recent swing low, so we see the recovery as corrective which can stop now at 50-61.8% Fib. level. That’s ideal resistance from where the new sell-off is expected today, while 10375 invalidation level must not be breached. Based on the current structure the decline can be very strong in sessions ahead.
German DAX, 1H
GBPJPY
If stocks will continue lower, then our focus for trades should remain on JPY crosses. Below I am looking at GBPJPY that is looking very bearish following a sharp turn down from 163.80 this week. We will wait on a corrective bounce from a trendline support that could offer nice short entries after a three wave bounce up in wave E of 4).
GBPJPY, 4H