$EURJPY (10.31.2013)

Pair turned lower sharply after a failed test of 135.50 peak and the decline clearly looks to be impulsive. Pair is close to completing wave iii of ( iii ) of (( c )). It should make corrective pull backs and keep trading lower toward 133.04 which is (( c )) = 1.236 x (( a )). Wave (( c )) needs to be in 5 waves so we need to see RSI divergence to call wave (( c )) and B completed. Until that happens, move lower can extend. After this, pair should turn higher and resume the rally for new highs above 135.50 or at least make a 3 wave pull back.


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