Elliott Wave Analysis: USD Index, USDJPY and S&P500
USD remains in bullish phase as expected as USD index turned up from around 102.50 where wave 4 appears completed, so current wave 5 can be in play for 104.00 or even 104.50. At the same time, we can expect EURUSD to decline through 1.0350 and down to 1.0300, while USDJPY is moving up for 119.00. Commodity currencies are still one of the weakest with NZD and AUD keeps trading lower as metals turned lower.
USD Index, 1H
USDJPY bounced from 116.53 after deep wave four pullback, which found a support at 50% retracement but still above 116.12 invalidation level. We see sharp leg up now, which can see wave five rally up to 119.00 and then finally to 120.00.
We see a triangle on E-mini S&500, a continuation pattern that is pointing to a new high, ideally to around 2280. New leg up on stocks may support our projection on USDJPY for 120.00.
Find more: Contributing Authors