It certainly has a chance of seeing a reversal back to the dollar downside today – maybe into tomorrow. Looking at the low in USD/JPY appears to suggest gains while the expectation of EUR/USD pushing for losses and for USD/CHF for a final high. At the same time, GBP/USD should follow the same template as EUR/USD.
It’s all about swings and roundabouts.
With USD/JPY rally and EUR/USD declining, there doesn’t seem to be much of a range in EUR/JPY. It has certainly found a low and on Friday’s reversal a 5-wave rally. Considering that we’re going to see these two pairs forming a potential complex correction in EUR/JPY – perhaps a triangle, flat or expanded flat as far as I can see.
While the majors appear to be pretty set to see these swings, the Aussie seems to be the odd man out. As far as I can see, it looks like it needs some swings, initially lower, but overall it looks like an expanded flat should develop…