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 TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/