Elliott Waves: USDJPY expected to Bounce Once DAX Completes

Stocks are moving down for the last 24 hours but the USD did not fall much since then, implying that the US currency will remain bullish and even accelerate higher when stocks will find a support line. On DAX we see a nice turn down but weakness may not be here for long as we see a leg from 11070 as wave C that is part of a correction in wave 4). We are observing an expanded flat so ideally, market will find a support beneath wave A swing low, probably somewhere between the 106802-10774 levels.

German Dax, 1H

If DAX will turns up in the next few sessions then USDJPY should also continue higher. We see the pair in wave four pullback required to be made by three waves. For now that’s not the case yet so we assume that pair is headed slightly lower down to the 122.70 area, where we see 38.2% Fibonacci support. That’s an ideal level for a bounce back to the highs.

USDJPY, 1H

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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