The DXY's (US Dollar Index) subwave d has stalled just above Thursday's low at 77.167. This may suggest that the current subwave has not terminated and has more to go before entering the final stages of the latest complex correction. While the EUR/USD is in a similar position, the USD/JPY should be carefully watched as it continues to hover near 15-year lows. Typically in bear markets of this magnitude, markets tend to accelerate once key lows are breached. Thus, a marginal test of JPY80.41 could result in a false-break rebound, given the move down from 82.00 has been weak (from a time standpoint). Once again, it depends on whether the MOF decides to intervene and defend the psychological JPY80 threshold. Meanwhile, the S&P 500 continues to test 14-day MA support. If this key support is lost on a closing basis, then the DXY has a chance to recover back towards the 78 handle.
STRATEGY: LONG EUR/USD from 1.3780, trailed stop-loss at 1.3780, targeting 1.3962/1.4023
