On Saturday, there was some risk-off sentiment spreading due to new tensions between Iran and Israel in the Middle East, with cryptos coming down a lot, but it appears that markets were able to stabilize a bit and investors calmed down by the time the market opened on Sunday night. It’s very interesting to see this price stabilization in stocks despite some fear spreading over the weekend. Looking at the US dollar, we are seeing some intraday minor pullbacks, but I’m afraid that the US dollar has room for more strength, especially when looking at different structures in the FX pairs.
We are also seeing a very strong rise in the USDJPY, but it looks like the Bank of Japan is concerned about the potential weakness of the Japanese Yen, so they will most likely hold some new meetings, maybe even with other countries, and will possibly even act on the FX flor to send the Japanese Yen higher or at least to stop this current drop. Just be aware that there can be some volatile reversals in Yen pairs.
Keep in mind that looking at the USDJPY right now, we are seeing prices in a fifth wave up. So, we know that after five waves up, the market can slow down for a minimum three-wave correction. Therefore, some kind of correction here is clearly very possible, if not probable.
Join me in our webinar later CLICK HERE
Grega
Become a premium member
Get daily Elliott Wave updates for some major Digital currencies, FIAT currency markets, major stock indexes, gold, silver, crude etc. or apply for unlimited access to the Elliot Wave educational videos.