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USD/JPY and US Notes Elliott Wave Analysis

We have seen a move up in US notes on Friday after the NFP report which could provided important information for the USD pairs this week. As you know when US notes will rally, yields will fall which will cause a downside pressure on stocks. At the same time this is a good news for JPY, meaning bearish for USDJPY.

On the chart below of US notes we anticipate a reversal up after a wave (E) down to a trendline support where wave B triangle may already be finished. However, we still need that 125 break to support a bullish view for wave C rally up to 128’00.

10 year US notes Daily Elliott Wave Analysis

US Treasuries Elliott Wave analysis August 2014 technical outlook and chart

If notes will rally, yields will fall so our interest for a trade set-up will be in USDJPY. Traders that follow our forecast regularly will know that we are observing a bearish triangle on USDJPY, therefore we think that the current intraday gains will be limited in wave C) that is part of a triangle. Based on intraday price action, we could be considering shorts but after a completed five wave rally. In other words, we want to see a bearish impulse from a new high, as fifth wave is still missing.

USDJPY 1h Elliott Wave Analysis

USDJPY Elliott Wave analysis technical dollar yen chart for currency trading forex

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!