Elliott Wave Analysis On SP500 And USDJPY
US stocks turned sharply up on Friday, which confirms the fact that bullish price action is still in play as all of the losses that occurred after ECB on Thursday were erased. But despite strong recovery from 2039 we don't think that uptrend will continue straight up to 2120. Based on the latest wave structure, we assume that new minor corrective retracement will occur, which can be wave E of a triangle in wave 4). Ideally this leg will retrace back to 2055/2060 area before uptrend may continue.
No change on USDJPY in the last few hours; price is still looking bullish since Friday when market gave us signs of a completed triangle at 122.29. As such, we expect more upside this week, ideally towards 124.50, but we may see a new correction to 123.10 before highs around 123.70 can be finally taken out. However, sooner or later break out from a 160 pip range will occur, while 122.29 support holds.
USDJPY, 30 Min
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