Elliott wave Analysis: EURUSD and USDJPY Update
We have seen a sharp drop of the USD yesterday following FOMC decision and press conference. EURUSD moved up to 1.1450, supported by GOLD and OIL while stocks firstly rallied, but then quickly slowed down. This event just caused even more dollar weakness which has been technically the case already before the news, so our views are mostly unchanged, but there can be pullbacks on some of the pairs.
Despite very strong rise on EURUSD there is a fifth wave up right now so upside can be limited, and a reversal can be coming, either from here or from a new high. So ideally, there will be a three leg setback to 1.1300-1.1350 area.
USDJPY finally fell lower into wave C) which is a motive wave so more weakness is expected for now, ideally towards 109.50/70 before bearish trend is finished and reversed. This one can be very interesting also for other xxx/JPY pairs when reversal comes into play.
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