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Japanese Yen is showing a very weak picture today across the board, losing a lot of value against the other major currencies but the most against the British Pound (more than 1%).   The main driver for lower Japanese Yen is higher stock market and raising yields.

Elliot Wave USD/JPYGuest post by  Gregor Horvat

The best positive correlated pair with bond yields is Usd/Jpy, which found the support today at 82.30 from where an impulsive reaction appeared and pushed the pair above the 83.78 wave (A) region, which definitely confirms that larger trend is up! We should see at least three-wave bounce on the upside from the 82.32 region, or potentially this could be start of a new bullish cycle through 84.40 and much higher later on.  If we are on the right track here, then five sub-wave structure is a red wave 1), with wave 2) pull-back to come in the very near-term. As such, any three wave of a retrace within a wave 2) should offer a Long opportunity, while the market trades above 82.30; new established support.

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