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USD Index Moves Towards New Highs, USDJPY Finding Support

The USD index turned higher yesterday and took out two important levels; 95.03 which is a high of a wave D and also the upper triangle line. The next thing to watch is the leg from 94.04 that is sharp and impulsive so we definitely expect more upside in the sessions ahead as we want to stay with the market sentiment.

USD Index 1h Elliott Wave Analysis

DXY February 27 2015 technical Elliott Wave Analysis dollar index

The reasons for a higher USD yesterday were US economic data that caused a sell-off on US notes. If US notes are down, it means that yields go higher which is supportive for USDJPY. As such, we assume that USDJPY could hold 118.20/30 support and that wave (e) can be a triangle. If we are correct then we may look for some longs next week as wave 4 can be near completion.

USDJPY 1h Elliott Wave Analysis

USDJPY February 27 2015 Elliott Wave analysis for currency trading

 

More:  EUR/USD finally falls out of range – more to come?

Gregor Horvat

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!