Therefore, we are anticipating a fifth wave lower to retest Monday's low near 116.
Here are the internals we are watching:
Elliott Wave Count: It appears we are in a wave (v) lower to retest 116. The counts for EURUSD , SPX500 , and Gold all show US Dollar weakening.
Wave Relationships: The wave (iv) appears to have terminated in typical relationship to wave ( iii ). That places a target for wave (v) near the wave ( iii ) low of 116.
OBV: 1 hour and 4 hour OBV is hovering near lows even though price still has a couple hundred pips to match the lows. This means down is still in control and is a symptom.
SSI: Sentiment is currently positioned at +2.5. Both long and short positions have dropped compared to Friday's levels. Positioning dropped means traders are less committed to the market...possibly out of fear. However, at +2.5 it is still an extreme SSI reading.
Since the stock market sold off and ended the day on its heels, this suggests the USDJPY may follow suit.
Will China step in and rescue equities?