USD Index and USD/JPY experiencing corrective set-back

February 16, 2017 08:43 AM
Elliott Wave Analysis: USD Index & USD/JPY

We have seen a turn lower on USD Index in recent trade which formed reversal on the Euro/U.S. dollar (EUR/USD), British pound/U.S. dollar (GBP/USD) and U.S. dollar/Japanese yen (USD/JPY) currency pairs along with other major pairs. However, the USD Index is in a new corrective set-back, which can either be Wave 4 or Wave 2; for now, it is too soon to confirm, but in both cases, we see limited weakness. First support is now at 100.70, but if that's Wave 2 then this will be a deeper one, maybe even to the 100 mark with three legs. Anyhow, we see USD Index in bullish mode if 99.17 holds.

USD Index, 1-hour

The U.S. dollar/Japanese yen (USD/JPY) currency pair is in a pullback, hopefully in Wave 2 retracement that should be made by three sub-waves minimum. We now see a wave down, so more weakness to come after Wave b pullback which could then cause decline to 113.22 or 112.86 support.

USD/JPY, 1-hour


About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: