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USD/JPY And EUR/USD Snared In A Correction

Published 11/14/2016, 11:50 PM
Updated 07/09/2023, 06:31 AM
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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AUD/USD
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EUR/JPY
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Over the past 34 years, having witnessed a sufficient number of slightly exaggerated moves on Full Moon days, while I hadn’t factored this in yesterday, I was quite surprised with the Super Moon overdrive yesterday. This generated stronger Wave (iii) projections in EUR/USD and USD/JPY, less so in USD/CHF while GBP/USD maintained a stiff upper lip. AUD/USD was already asleep by then and had gone for a few sips of the amber nectar.

With the sight of this “Mangetsu,” as it is called in Japan, we should now see a respite from the current trend. The pullbacks are – in general – pretty easy to identify in EUR/USD and USD/CHF although GBP/USD may well have an alternative corrective pattern – potentially an irregular triangle. So, best keep an eye on the targets that should (hopefully) all find completion around the same time. Therefore, today looks more like a slower day compared to yesterday.

With both USD/JPY and EUR/USD basically snared in a correction there doesn’t seem much hope of points from EUR/JPY – and frankly the structure has descended into a rather messy structure that is more akin to a 9-month old baby trying to work out how to use a pencil. It is a mess to be honest and I’d suggest avoiding this pair until there is a stronger outlook from the intrinsic pairs.

As for AUD/USD, well, it seems to have decided to have a fit and refuse to provide the deeper decline that I had expected. There’s nothing wrong with that – and hasn’t broken any structure – but it seems to need a mildly deeper pullback, along with the Europeans. In some ways I am quite content with this as it makes the next target easier to identify.

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This should start as a slow day and if it remains slow then it’ll be a darn boring day…

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