The USD index turned higher yesterday and took out two important levels; 95.03 which is a high of a wave D and also the upper triangle line. The next thing to watch is the leg from 94.04 that is sharp and impulsive so we definitely expect more upside in the sessions ahead as we want to stay with the market sentiment.
USD Index 1h Elliott Wave Analysis
The reasons for a higher USD yesterday were US economic data that caused a sell-off on US notes. If US notes are down, it means that yields go higher which is supportive for USDJPY. As such, we assume that USDJPY could hold 118.20/30 support and that wave (e) can be a triangle. If we are correct then we may look for some longs next week as wave 4 can be near completion.
USDJPY 1h Elliott Wave Analysis
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