Elliott Wave Analysis On GBPUSD And USDJPY
Cable is trading higher as expected, now in wave 4) which already has three sub-waves up from the low so we may see a new turn down very soon. Notice that price is also now at 38.2% Fibonacci resistance area which is ideal region for another turning point, this time down into wave 5). At the moment however, price is at the high of current pullback, so we have no evidences of a completed recovery yet, but break beneath 1.3912 will open door for 1.3700.
USDJPY is higher this week, so current price action may not be a triangle as we firstly thought, but corrective anyhow as we are tracking wave 4. Ideally price is now in wave c that can find resistance at area of a previous wave A so we need to be aware of a bearish turn. However, it’s important to wait on sell-off back beneath 112.00 to confirm lower prices. Keep in mind that there is also alternate scenario; low in place if 115.96 is broken. In that case we would turn immediately bullish on this pair.
Find more: Contributing Authors