EURAUD looks very interesting for more upside after clearly five waves up from 1.4980 followed by very slow and overlapping retracement from 1.5280 within a trading channel. That's clearly a corrective personality, so we think that pair will continue higher early this week back to 1.5280 and maybe even to 1.5400 Fibonacci projected level.
I am tracking this USDJPY very closely here. On the 15min chart market turned nicely up from 101.35 but waiting on five waves to confirm a bullish reversal. In that case we would be interested in longs.
The risk-on mode is still in play with S&P futures at its highs, causing some downside pressure on USD across the board, moves that are also supported by higher commodities, especially metals.
On the S&P futures intraday chart we see prices moving up in impulsive fashion from 1802 that can be wave v). However, we need five waves up before bullish run can stop. Ideally market will reach 1845 figure in the next 24-28 trading hours. Keep in mind that US cash market is closed today n observance of Presidents' Day, so moves can be muted.
Last week we have closely been tracking EURJPY and highlighted a possible retracement down to 138.20 area where we would be interested in long trade idea. This is still possible, but based on latest swings we see triangle as more appropriate labeling. We see price now moving up in wave (d), so be aware of wave (e) pullback before market turns up for wave C.
The latest upward reaction on USDJPY from 101.35 also suggests lower JPY and a continuation to the upside, ideally from current levels as expanding diagonal in wave (b) can be finished at 61.8% Fibonacci retracement level.
From a trading perspective and also analytical perspective the next big move on the EURUSD remains questionable and unconfirmed while pair trades in the middle of January high and low. But on intraday basis we see five waves up from 1.3560 now approaching 1.3730/40 resistance area where current bullish waves may slow down at the start of the week. Latest overlapping and very slow price action around 1.3700 figure and divergence on the RSI also suggests that gains are limited.
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