USDJPY finally fell to a new low after a nice corrective bounce up into wave iv) which found resistance near 119.70. Now we are tracking a new five wave decline from that swing high which is still underway, pushing the price lower within the red wave v) that can hit levels around 118.00 today. The price can turn back to the upside as a big five wave drop from December can be coming to an end. At the same time, we have to keep an eye on 117.79 level because a push through that price will invalidate our impulsive wave count as the red wave v) would then be shorter than wave iii) which is not allowed since wave iii) is already shorter than wave i).
EURAUD is moving higher as AUDUSD keeps moving lower in a sharp impulsive manner while EURUSD is going sideways. On the updated chart below we can see a nice five wave rally in the last 12 hours which is probably an impulse that confirms a bullish trend for the pair. However, we have to be aware of a three wave set-back later today, but not lower than former, red wave iv).
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