Daily Wave Analysis for 5 February 2014 2014.02.05

EURUSD
The EURUSD broke the daily support line (magenta) to the downside and currently an impulsive correction could be taking place to complete a wave c (blue).

4 hour chart EURUSD:

Wave 4 and 5 (green) probably remain so the best trade is the breakout with the trend (red arrow); the other option is an upside break (green arrow) but only above the resistance (red line).

60 min chart EURUSD:

GBPUSD

The GBPUSD has broken the uptrend (break of the blue channel). For the moment the wave count has been tentatively formulated as bearish and impulsive.

4 hour chart GBPUSD:

Wave 3 (green) completed a bit lower yesterday, but has been making a retracement ever since which might be a wave 4 (green). A break of the trend line (blue) could mean that price is moving towards the target (red arrow).

60 min chart GBPUSD:

USDJPY

Price could have completed a retracement for wave 4 (blue) and therefore a continuation higher from the 50% Fib (instead of the 38.2%) up to wave 5 is a decent possibility. The invalidation level of the bigger wave 3 and 4 (dark blue) wave count is +/- 99 (3 thick red lines).

4 hour chart USDJPY:

The down trend on the lower time frames might still have some downside continuation to complete waves 5s and Cs.

60 min chart USDJPY: