EUR/JPY Update February 7, 2009

Hi Traders,

Here an update on the EURJPY:

As I said last week, we are in an ABC correction pattern. The pair has shot through a minor resistance line which was forming a triangle and surged to the 1.2000 area.

I believe we will still get one attempt to break 1.2000 looking at the MACD there might be some more room upward. Looking at the wave count it looks like 1.2000 is the start of wave 4, which could potentially bring us down to 1.1650 the 61.8% retrace of wave 3.

We'll see how it plays out.