When I awoke around the early hours of the morning I had a shock. EUR/USD was rocking higher, USD/CHF lower – and also USD/JPY. However, these three pairs have only seen the Wave iii but should see some modest pullbacks to then see a final low. Basically, EUR/USD and USD/CHF are seeing expanded flats and these need a pullback and then a new high.
In USD/JPY, the 112.14 high was the (blue) Wave [a] and we have seen a Wave iii, potential Wave iv and then for a Wave v to complete the pullback in the Wave [b]/[iii].
Meanwhile, GBP/USD was the most placid pair. Perhaps it woke up after the other pairs had gone haywire. Maybe it was me that provided the sleeping tablet and woke up just after the other pairs had completed the Wave [iii]’s. There’s still a risk of a slightly deeper Wave b/iii but as long as it holds below 1.3300.
It looks as if we have formed a triple three in AUD/USD. I’d suggest providing a slightly high level but overall, we should be heading lower once again.
EUR/JPY did see further gains as I had considered. We’ve either seen the high but I suspect just one more high to then see losses resume.