The euro-yen has pulled back from its highs and has currently found support at the trendline for the recent move up. It will probably rally from here and possibly retest the 113.55 highs, but after that I see the probability of more weakness. The small double bottom which formed at the 109 lows on the 12th and 13th of July has actually now met its upside target resulting in a slackening off of the rally.
This move looks like an Elliot 4th wave of the much stronger and steeper 3rd wave fall which preceded it. It is unlikely to mark the end of that move down with wave 5 still to come and a minimum target at the old 109.60 lows.
Analysis prepared by:Joaquin Monfort