NZD/JPY Looks Bearish Against 86.40

European shares and U. S. pre-market has been trading higher for the last couple of hours and caused some downside on USD and JPY.

Earlier we mentioned to our members that we will keep them updated regarding the JPY pairs as there could be some trading opportunity in the near future based on bearish S&P sentiment. Below we have NZD/JPY where decline can be counted impulsively, so current rally should prove corrective.

We would love to be short on that one but we need three legs up from 80.54. Current minor five wave rally in red labels represents wave (a) of a zig-zag, so more sideways and even upside price action to come. NZD/JPY 1H Elliiott Wave Analysis.