German DAX and USD/JPY eyeing more upside

Elliott Wave Analysis: DAX & USD/JPY

We have seen an attempt of a new push up on stocks indices in the last few sessions with E-mini S&P500 moving into 2815 level while German DAX rallied yesterday toward 12770. In Asia Nikke index slowed down around 22900, but overall we see room for more upside on stocks at least on European markets as DAX shows an ongoing five wave move in wave C. We see room on DAX towards 12900.


German DAX, 1h-hour

 

If the DAX will stay in uptrend and U.S. markets also later, the U.S. dollar/Japanese yen (USD/JPY) currency pair can see more upside as well, but maybe after a deeper pullback as part can be stepping into a fourth wave after that intraday reversal down from 113.00 area. If we are correct then new bullish set-up may show up around 111.90/112.20 once again as this seems to be very good looking support zone.


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.