From the beginning of 2007 we have seen 5 waves up, which indicates a motive wave. After the end of motive waves we can look for a corrective move, and from looking at the chart we are currently in it.
I have us currently in a (c) of C down, initially targeting the 110 region or the 50.0 extension. Since nothing is guaranteed in the market we need to keep an open mind and have all counts on the table. This is where I can see another scenario taking place… it could also be (a) of C, with the (b) wave to come. This second count would mean that we would see a bounce of 1-2% to the upside before we continue on to lower levels. It would also target the bottom of the box near the 105 region, possibly extending further down to 102 area.
All of this is calling for another 5% drop to go in the yen with the possibly of extending down another 11-12% in the short term.
Author: Peter Nitso
Twitter: @PeterNitso
