I clearly got caught with the expanded flat in GBP/USD – the high within a whisker of the extreme. I hadn’t expected that pullback because the earlier Wave ii was deep enough already. That allowed EUR/USD to make a new high – again with the high a mere 4 points below the extreme. In USD/JPY I’ve had to adjust the 5-wave moves higher to accommodate the extreme pullback in a Wave -ii-. All of these still provide valid (Dollar) upside daily targets. I’m still working through a 5-wave in USD/JPY that began in June 2013…
So… we’re going to form bullish foundation waves in USD/JPY before any stronger move. EUR/USD, USD/CHF and GBP/USD need a pullback lower in the Dollar. Once they have been established we can get back to the larger Dollar upside.
With USD/JPY moving higher along with the pullback in EUR/USD, we should see a pullback in EUR/JPY. Yesterday’s low was the second 5-wave decline and therefore it formed a Wave i. The pullback higher will form the Wave ii. Once EUR/USD has had enough on the upside we should begin to see losses once more.
I had to work through the daily losses AUD/USD to form the Wave (a)/(iii) and from there – as far as I can see, we need one more push higher before losses resume.