I’ve noted that in the hourly markets we are seeing limited Wave ii’s and Wave b/iii’s. I sense that we’re going to see further gains, but at some point we’re going to need a deep pullback in a Wave b/iii or deep Wave ii. The timing of when that will occur is rather uncertain.
We’ve just seen USD/JPY form a relatively shallow Wave (b). It makes sense because EUR/USD and GBP/USD are still looking to the downside, while USD/CHF also saw a shallow Wave –b-/-iii-. We should be still looking for stronger gains in the dollar.
Even the Aussie managed to see losses – although slow and ragged and this should continue.
So with a bullish USD/JPY and a bearish EUR/USD, I tend to suggest a rather sideways move in EUR/JPY.