Stocks and XXX/JPY Looking for A Final Rally Higher – Elliott wave analysis
Stocks are back at the highs as expected, after we identified latest retracement as a corrective leg. Ideally the German DAX and SP500 futures are now in their fifth waves, so we may expect a top this week after those five sub-waves will fully develop in a fifth wave.
As stocks keep progressing higher, we may see more upside on USDJPY as well. There is a fourth wave seen on hourly chart so a final trust up to 110.30/50 area can be in view, before a top is formed. At the same time, we may also expect CADJPY to reach higher resistance at 83.00/83.50.
I really like this one for a possible turn to the south, especially if oil will continue to weaken and when 10 year US note finally turns higher.
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