Stocks are moving down for the last 24 hours but the USD did not fall much since then, implying that the US currency will remain bullish and even accelerate higher when stocks will find a support line. On DAX we see a nice turn down but weakness may not be here for long as we see a leg from 11070 as wave C that is part of a correction in wave 4). We are observing an expanded flat so ideally, market will find a support beneath wave A swing low, probably somewhere between the 106802-10774 levels.
German Dax, 1H
If DAX will turns up in the next few sessions then USDJPY should also continue higher. We see the  pair in wave four pullback required to be made by three waves. For now that’s not the case yet so we assume that pair is headed slightly lower down to the 122.70 area, where we see 38.2% Fibonacci support. That’s an ideal level for a bounce back to the highs.
USDJPY, 1H
