USDJPY Facing A Temporary Correction; While USD Index Trading In Final Stages Of A Downtrend 

USD Index

Gregor - Author BIO photo

USDJPY is in a nice recovery since mid-June when market turned up from 108.80 after a completion of a bigger three wave fall. That said as we can see bulls took charge and can now be unfolding a bigger impulsive structure. We see first waves one and two completed, which means recovery up from 110.95 level can be blue wave three, now finished after recent turn down from around 114.50. As such, be aware of a three wave set-back into wave four that can stop around 112.87 level.

USDJPY, 4H

4h usdjpy july 12

USD index is still trading bearish, specifically in final stages of black wave 5 of 5). We can see recent rally as a corrective wave 4, that found its resistance at the 96.21 level, from where a new drop lower occurred. That said, ideally current black wave 5 will now search for support and a low near the lower channel line, where a new bounce higher can follow. A five wave recovery from the lows and a breach above the 96.21 level would indicate a change in trend.

USD Index, 4H

USD Index

 

Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.

http://www.ew-forecast.com/service

@ewforecast

By Gregor Horvat

Find more: Contributing Authors

 

One Response to USDJPY Facing A Temporary Correction; While USD Index Trading In Final Stages Of A Downtrend

  1. Mtho

    Am new in forex but I am learning a lot from you

     

Leave a Comment


Broker Cyprus TopFX