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USDJPY is at the highs, but now in the fifth wave so the rally could be limited on the upside. We see resistance coming in around 120.85, so it shall be interesting to see how the NFP figures will impact the pair. The trend is still up, but keep an eye on that 119.31 support line; a daily close beneath that one could put a top in place.

USDJPY 1h Elliott Wave Analysis

usdjpy Elliott Wave Analysis December 5 2014 technical outlook for currency

One clear pattern that we see ahead of US Jobs data is AUDJPY. Note that the market is still very slow and overlapping since the Nov 26th low, so the current move must be a correction. As such, the next strong reaction should be to the downside as a first leg from 102.81 unfolded clearly in an impulsive manner. The only question is which pattern will take place from Nov 26th!? Well, we are hoping for a double zigzag but a failure push up to 101.30/101-70 resistance. Ideally we will see a sell-off from those levels. Our bearish view will be invalidated only if we go above 102.81.

AUDJPY 1h Elliott Wave Analysis

audjpy Elliott Wave Analysis December 5 2014 technical outlook for currency