USD/JPY and AUD/USD to be put in place

February 17, 2017 10:27 AM
Elliott Wave Analysis: USD/JPY & AUD/USD

The U.S. dollar/Japanese yen (USD/JPY) currency pair is making a deep pullback from 114.95, which I did not expect to be so strong. However, I have seen several times in the past, deep and sharp corrective waves. So despite a strong move down in the last few days, I still see chances for a bullish continuation. I labeled a double zigzag that has reached 112.86 support near 61.8% Fib. area. A bounce from here would be nice, but we need to be patient and wait on a strong leg up, ideally back to 114.00 to make sure that a new swing low occurred.

USD/JPY, 1-hour

There is a reversal going on for the Aussie/U.S. dollar (AUD/USD) currency pair down from 0.7733, now moving back into the triangle zone, so we can consider that top has been put in place. However, this will not be confirmed until we see a five wave decline below 0.7636, so we have to be patient with a bearish view.

AUD/USD, 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/