EUR/JPY
Commentary – Based on the outlooks for both the EURUSD and the USDJPY, it seems likely that any declines in the EURJPY will prove corrective and give way to fresh highs. Measured objectives for the end of the 5 wave rally from the 2000 low are between 171.75 and 175.02. The uptrend is intact as long as 161.49 is intact.

Strategy – None

EUR/CHF
Commentary – We wrote last week that “the EURCHF may push to a new high in the weeks ahead to complete an ending diagonal that began April 19th. Connecting the April 19th and June 6th lows and projecting a parallel line from the 5/20 high projects a 5th wave high near 1.6660. Coming under 1.6413 would signal a reversal.” The pair hit 1.6671 last week before reversing. If the decline stretches into 5 waves, then our confidence in the bearish bias would strengthen (so far, there are 3 waves down…see above).

Strategy – None

EUR/GBP
Commentary – We wrote last week that “the 5 wave rally from .6535 to .6867 (late4 January-early March) indicates that the larger trend is bullish but the next leg up has not started yet. A larger flat correction appears to be unfolding from .6867. The C leg of the correction would equal the A leg at .6737 and the 61.8% of .6535-.6867 is at .6662. We are looking for a bottom to form in this zone before the EURGBP rallies impressively.” The low last week was at .6712, just ahead of the 50% of .6535-.6867 at .6701. A continued drop targets the 61.8% at .6662. A rally above .6777 signals that a low is likely in place.

Strategy – None

Jamie Saettele is a Technical Currency Analyst for FXCM.