FTSE 100
As you all might noticed risk-on sentiment has resumed this week with stock markets moving higher in an impulsive manner. However, there are some pullbacks at the moment but, most-likely, only part within an uptrend. At the same time we are looking at some XXX/JPY pairs that are tracking global indexes, so more gains on equity market mean lower Japanese yen.
The first chart we will look today is FTSE100 which shows a very nice, classic impulsive wave structure in progress. These are five wave patterns, structured by two contra-trend waves two and four. What really matters about identifying a corrective set-back is a slow and overlapping personality, which is clearly visible in this current retracement down from 6650. We see it as wave four that can be looking for a base later today around 6570/6580 area. Invalidation level is near 6530.
FTSE, 15Min
EURJPY
So if we are correct on FTSE above, then USDJPY and EURJPY can be in the similar temporary retracement. EURJPY is looking very nice at the moment, going lower into wave 4 that has room for lower levels, down to around 114.25 where price is expected to turn up for a fifth wave.
EURJPY, 30Min
