EURUSD has more room to fall; USDJPY could extend gains

On EURUSD we have seen a strong sell-off yesterday after the FED said that rates are rising in 2015. So, traders are positioned for long USD on speculation for higher rates which is obviously good for the buck. On the intraday chart of EURUSD we see a bearish impulse in progress with room for more weakness in the short-term as decline from 1.2570 should unfold in five waves, but we see only three waves down, where blue wave (iii) was extended. As such, traders should be aware of even lower EURUSD in sessions ahead. Resistance for blue wave (iv) comes in near 1.2340-1.2380.

EURUSD 30min Elliott Wave Analysis

USD is also looking bullish against the JPY, but we still do not have any complete five wave cycle since the pair bottomed at 115.55. However, it looks like this could happen today if we get another high soon that would make an extended red wave iii). In that case we would be very confined that USDJPY completed a larger corrective decline and that the bullish waves are back in progress. We could then even consider some longs.

USDJPY 1h Elliott Wave Analysis

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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