Elliott Wave Analysis: USDJPY and GBPUSD
USDJPY is trading south this week but despite some strong legs down, we see market in a corrective phase of a wave four. We are tracking a second zigzag on hourly chart where pair is testing a support right now, near 114.00. Also, notice that this can be an ending diagonal in wave C, so reversal can be here even sooner than we think. A bounce in impulsive price move above 115.63 would be important confirmation that low is in. In such case, I would be interesting in long entries on pullbacks.
GBPUSD is trading higher, but we do not have five waves up yet, so it’s hard for me to go in here with such structure. That said, I suggest to wait on more price data and time, and see if we can get an extension up to 1.2400 and then maybe buy on fourth wave pullback.
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