USDJPY Could Be A Good Buy If US Bonds Will Be Trading Lower - Elliott Wave

By: Gregor Horvat | Thu, Oct 31, 2013
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On the 5 year US notes we can count five waves up from the lows so sooner or later larger downward pullback will occur in three legs. This means that US yield will should be moving to the upside which is supportive for the USDJPY.

5 Year US notes 4h

5-Year US Treasury Notes 4-Hour Chart

On USDJPY we can see a nice clean five waves up followed by a recent bearish reversal from around 98.70 where wave (i) appears complete so pullback is most likely a corrective wave (ii). This wave (ii) should be made by three legs, so we expect more downside or sideways price action in the next 24 to 48 trading hours. But after that pullback we will be looking for long entries, ideally from around 97.80-98.00 support zone.

USDJPY 1h

USDJPY 1-Hour Chart

 

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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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