We are tracking an impulse down on EURUSD which may extend to 1.1100 in the near term, while USDJPY may rise to 112.00, but after a fourth wave correction. Both pairs will be on my watch-list next week for potential trading candidates.
EURUSD, 1H
USDJPY, 1H
The reason I like these two, for more USD strength ahead, is in US treasuries after that nice turn down from above 127’00. The decline is strong and may suggest that the ending diagonal is completed which means more weakness on 10 year US notes, so based on correlation with EURUSD and USDJPY, dollar should be looking for more upside.
10 year US notes vs EURUSD, 2h
