Elliott Wave Analysis on USDJPY and USD Index

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USDJPY

A decline on USDJPY was much sharper than we thought at first sight so we need to respect the market sentiment and go with the current trend. That said, we adjusted the wave count and are looking down now, back to 115.97 level and possibly even to 114.00-115.00 by the end of this month. Despite our current bearish view on USDJPY, we still think that leg down from 121.68 belongs to a big downward correction on the daily chart.  If we are correct then the price is now in minor blue wave four within an ongoing bearish impulse that can resume after retracing back to 118.20 resistance.

USDJPY, 4H

usdjpy 4

USD Index

USD Index is accelerating to the downside after 98.45 was broken last week which puts wave C) in play that already took out that 97.22 low. However, weakness may not be here for a long-time as the current decline from 99.87 can already be in its late stages with five sub-waves. As such, traders must be aware of a bounce; ideally in impulsive fashion later this week.

USD Index, 4H

usd indeks 4 (2)

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About Author

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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