USDJPY broke sharply to the upside in the past few days, clearly making an impulsive rise that is still incomplete, but as always pullbacks can occur. A new corrective setback could be seen here in the upcoming sessions, as we can count five waves up within an extended red wave 3) which is already turning down from above the 124.00 level. That said, traders must be aware of a retracement back into the 122.80 area before the uptrend may resume again.
USDJPY 4h Elliott Wave Analysis
The USD Index is trading higher in the last two weeks after it broke out of a downwards channel. Notice that the rally is sharp so we see it as an impulse that is the start of a new bullish cycle. That said, further gains will likely follow in the days ahead, ideally up into wave 3) towards the 100 projected level. A decline beneath 94.88 support will require an updated count.
USD Index 4h Elliott Wave Analysis
