EURUSD and USDJPY develop quick ABC zigzag corrections 2016.02.16

EUR/USD

4 hour

The EUR/USD broke the bullish trend channel (dark blue), which could indicate a larger correction back to the support trend line (green) via WXY (blue). A break below the support trend line (green) confirms the completion of wave 4 (blue) whereas a bounce at or above support (green) indicates that the wave 4 is not yet finished.

1 hour

If price continues lower as part of wave C (green) it could move towards the Fibonacci targets of C vs A. A break above resistance (orange) could see price correct higher towards the Fibonacci levels of wave X (blue).

GBP/USD

4 hour

The GBP/USD is moving sideways in a corrective zone within the wave 4 (purple).

1 hour

The GBP/USD completed a bearish ABC zigzag which took price back to support for wave X (green). A break below the trend line (green) and 100% level invalidates the wave X (green) structure.

USD/JPY

4 hour

The USD/JPY has built a bullish correction which has reached the 61.8% Fibonacci level. The broken support could now also act as resistance. The current wave count is invalidated if price breaks above the 100% level.

1 hour

The USD/JPY is building a larger correction via an ABC (green) zigzag. A break of the support trend line (green) increases the chance that wave X (blue) is completed.