The markets did not move much during the last three sessions; the only surprise is Oil which lost more than $3 from yesterday high. But even weak energies will not prevent more USD weakness which is expected to continue against EUR, CHF and others. The only exception could be USDJPY that is showing a bullish price action, and calling for more upside that will support yen-crosses as well.
USDJPY reversed sharply from 97.75 region in this week, which appears to be an impulsive price action that also took out the upper side of a downward channel. These are all important signs for a change in trend, even if just temporary. With that said, we will be looking for higher USDJPY in days ahead as long as 97.75 low of a complex corrective wave 2 is in place. Ideally market will continue higher back to 100.60 region in impulsive fashion.
USDJPY 4h Elliott Wave Analysis
On the 30min chart below we can see a clear five wave rise so our focus will be Long positions next week with members.
USDJPY 30min Elliott Wave Analysis
EURUSD is also on our radar screen after recent move to the upside, through 1.3500 figure which suggests more upside in days ahead. The reason for this outlook is a sharp rally from 1.3320 low which appears to be a third leg within a third based on the personality of the move. Recently a third leg has stopped in 1.3520-1.3585 resistance area so we suspect that current contra-trend movement is wave iv) that could look for completion around 1.3480-1.3500 figure. Keep in mind that larger trend is up and that uptrend could resume soon into wave v) of (iii). This outlook remains valid as long as 1.3384 level is not breached.
EURUSD 4h Elliott Wave Analysis