Dear traders, I hope you had some nice extended weekend after Labor holiday yesterday.
We can see some nice and sharp moves going into a new trading week, especially on yen crosses as USDJPY breaks higher, following no change on YCC by BOJ last week. But the best moves are seen on yen crosses like AUDJPY and NZDJPY, after RBA unexpectedly hiked rates to 3.85%. Looks like RBA is following the RBNZ surprise, so commodity currencies are strong as these CB are looking for further tightening.
Looking at USDJPY, we see this recovery as temporary, within higher degree downtrend after that sharp reversal in 2022 seen on a daily chart. Ideally, it’s wave B/2 rally now headed into 140/142 resistance area with subwave C now being underway.
Despite a current strong intraday bullish move, we think that this is still a higher degree correction from 127 and that bears will wake up on USDJPY, but from higher prices.
WTI Looking For The Support – Surfing The Waves Elliott Wave Video CLICK HERE