EUR/GBP Hourly Chart

It looks to me like an irregular flat correction is forming on the EUR/GBP pair. Price reversed very close to the 138.2% Fib level which is very common in FX markets during flat formations. Expect price head towards at least 0.88 if not slightly further before further downside. 

USD/JPY Ending Diagonal Complete

My previous ED count for the USD/JPY pair was incorrect, and price was held near the 61.8% Fibonacci of the A wave. Since completion of the diagonal, price has broken through resistance and then retraced to re-test the new support line. Expect a complete retracement to the starting point of the diagonal to around at least 90.50 over the next session and continues USD strength against the Yen.

USD/JPY Ending Diagonal Count

Here is my current favoured count for the USD/JPY pair. It looks as though an ending diagonal is forming, as both waves 1 and 3 look to be in 3 waves. Expect a throw over which is usual for EDs. I will be looking to buy at around 88.70 if price action does not invalidate this count before it reaches the entry point. 

EUR/GBP Trade Idea

Just a quick rehash on my EUR/GBP trade from a while back. The pair looks like it wants to retest the old wedge support line at around 0.8870. Fibonacci resistance also sits very close to this zone. Look to short from here with a stop above the high at 0.9030. I will be away celebrating for most if not all of tomorrow's sessions. Happy Australia Day!

USD/JPY Possibilities (2 Hour Chart)

As you would already know if you are a regular reader of my Blog, I am medium term bullish on the USD/JPY pair. In the above chart I have drawn the most bullish scenario, with the red X zigzag already complete and about to make a sharp move upwards. So far price has held near the 61.8% Fib of wave A. The move from 89.79 on the 5 minute chart counts as a clear 5 waves, and the retracement so far looks to be in 3 waves, however it is extremely deep, so confidence in this count is not high. It should become apparent very early in the Monday session if this count is valid or not. A break of 89.79 will invalidate.

In the chart below I have labeled the red X as a double zigzag. This means wave C of the second zigzag is still to come. A probably target for wave C is 88.50, which is very close to both the 100% extension of wave A of the second zigzag and the 100% extension of the first zigzag of the red X. If the above count is invalidated, 88.50 is where I will be looking to take more long positions in this pair. I will be away most of tomorrow and Tuesday, off celebrating Australia Day, so I probably won't be able to update the site through the day, but if price drops through 89.80, set buy orders to 88.50, with stops at 87.00.

USD/CHF Hourly Chart

The USD/CHF and USDX both have a very similar count at present. 3 waves up are clear with a 4th wave currently in progress. As wave 2 only retraced 38.2% of wave 1, it is likely wave 4 will retrace around 61.8% of wave 3. This leaves a very good opportunity for a trade with an enviable risk to reward ratio. Look to buy at 1.034 with a stop at 1.029. Target is above 1.05. Move stops to break even when feasible.

AUD/USD Hourly Update

Here is an update of my AUD/USD chart from earlier in the week. As you can see support at 0.918 has been broken and further downside is expected in a wave 5 to around the 50% Fib at 0.90. A breach of 0.9175 will take wave 4 into the territory of wave 1 and invalidate this count. A low risk scalp would be to set a short at 0.915 with a stop 30 pips away at 0.918. Target 0.903 and move stops to break even to negate and possible loss when feasible.

USD/JPY Chart Update

The USD/JPY looks to have been rejected just beyond the 38.2% Fibonacci of the last move downwards, and the black X may be complete. A double zig-zag formation is likely (being the most common form of correction), with an ABC down to the red X still to come. I have taken a short trade from where I removed my long positions at 91.80. I have been following USD/JPY closely combining my wave counts with Delta counts and have a high confidence in this setup. I expect weakness in the USD against the Yen over the coming week or so, before a sharp move upwards in the pair.

USD/JPY Hourly Chart

I think USD/JPY is in the process of finishing off a c leg of a B of an X. Expect resistance at around the 0.92 area, before a reversal and a C (of X) leg down to around the 0.89 area. 

AUD/USD Hourly Chart

Here is what I think is happening in the AUD/USD. As you can see there is a clear 5 waves up. I am expecting a break of the support line within the next session, with a fair amount of follow through the bring the pair down to around the 0.90 area. It is possible that a wave ii flat is forming, which means it will take longer before the support line gives way. A move above 0.933 invalidates this count.