Elliott Wave Analysis: USDCHF and USDJPY

USDCHF

USDCHF was in a strong uptrend during the last few months of 2016, so a decline since mid-December was just another correction or pause within the uptrend. We saw it as wave 4) that has unfolded as a complex correction, with sub-wave C being an ending diagonal. As such, the recent turn up from January 31 low can be a start of a new uptrend so the next strong reaction is expected to the upside, ideally into a third wave, as we see a completed wave two correction near 0.9965. The ideal projection target for wave three is towards the 161.8 Fibonacci level.

USDCHF, 4H

USDJPY

On the updated chart of USDJPY, we can see a nice and strong bullish turn taking place from around the 111.60 level, where we labeled the end of a complex correction. As such, the recent recovery gives us an indication for a completed double zig-zag correction and a suggestion that bulls are now back, especially after the recent strong leg up above 113.77 bullish level which means that the market can be headed up to 115.60 short-term projection, but likely even higher within wave three.

USDJPY, 4H

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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