On the 5 year US notes we can count five waves up from the lows so sooner or later larger downward pullback will occur in three legs. This means that US yield will should be moving to the upside which is supportive for the USDJPY.

5 Year US notes 4h

5-Year US Treasury Notes 4-Hour Chart

On USDJPY we can see a nice clean five waves up followed by a recent bearish reversal from around 98.70 where wave (i) appears complete so pullback is most likely a corrective wave (ii). This wave (ii) should be made by three legs, so we expect more downside or sideways price action in the next 24 to 48 trading hours. But after that pullback we will be looking for long entries, ideally from around 97.80-98.00 support zone.

USDJPY 1h

USDJPY 1-Hour Chart

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Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.

Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

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