Elliott Wavers say Yen and Nikkei set up for higher and lower moves respectively

FXstreet.com (Barcelona) - Elliott Wave technicians are calling for more upside in the Yen and more downside in the Nikkei before the primary trends (lower in the Yen and higher in the Nikkei) resume.

Both the Yen and the Nikkei appear to be in wave C of ABC corrections

The Yen futures contract (JY is the root) and the Nikkei 225 Index are being pushed and pulled about in the short-term by the opposing dovish and hawkish voices in Japan. Elliott Wave technicians, however, who focus only / mainly on the price action are identifying each chart as being in the middle part of their C waves of larger ABC corrections – lower for the Nikkei and higher for the Yen.

The Elliott Wave crowd uses Fibonacci projections to come up with rough targets of 1.0796 for the Yen futures and 11,500 – 11,700 for the Nikkei 225. That still represents 15% more downside for the Nikkei and approximately 5% for the Yen.

How do we know if this outlook gets negated by price action?

The Elliott Wavers say any close below 1.0098 will cast the bullish Yen call into doubt while a close above 14,185 will negate the bearish call for the Nikkei.