We can see a nice move down on stocks this morning, with DAX falling away from 12470 where we warned about wave B rally already last week. So current strong leg down can be wave C of D) that is part of a big triangle correction. So despite very strong bearish momentum, do not fall in love with bears just yet, as there can be an interesting support for another three wave rally from 11960-12100 area.
German dax, 1h
If DAX is going to see weakness this week, especially after that completion of wave E) of a triangle, then USDJPY can see more weakness as well, in correlation with other xxx/JPY pairs. On USDJPY we are observing a triangle and would love to try to get on the short side but after a completed wave E rally into 106.50 resistance. At the same time we may see EURUSD turn up after a completed a-b-c drop from 1.2445 high.
USDJPY, 1H
EURUSD, 1H
