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S&P500

US stocks have turned lower yesterday at the end of the session putting some pressure on USDJPY as well as other yen crosses. On E-mini S&P500 we anticipate a bigger three wave corrective set-back as the impulsive leg up from 1968 accomplished wave 5 of 3). As such, lower price can follow in sessions ahead which will pull down USDJPY as well. In fact, we would be interested in JPY longs against other currencies if risk-off mode will continue.

S&P500, 1H

SNP 1

USDJPY

USDJPY might have finally completed a triangle in wave 4), but we still need 112.20 breakout to confirm more weakness ahead. In that case, we would pay attention to minor wave two pullback as shown on the chart.

USDJPY, 1H

USDJPY 1