Usd/Jpy; Below 90 Again?
4 Hour Chart trend: Short. Main price points: 94.66, and 91.79. Looking for: Wave iv
Usd/Jpy made an amazing decline in Wednesday sessions, which we believe was a red wave iii) move. This move was confirmed soon as the wave i) lows (94.66) were taken out, with a new target around 93.00. Prices fell 100 pips lower, to the 91.79 area, which looks to be a wave iii) bottom, as they have already gained a little into a current wave iv). If the counting is correct, wave iv should not reach the 94.66 critical area. One of the basic EW rule is, that wave four must not overlap the territory of wave i). If the turning point in the current wave iv) appears somewhere below 94.66, the we will be looking for lower wave v) target below 91.79.
Dollar Index; Triangle completed? Short Dollar?
4 Hour Chart trend: Mixed. Main price points: 79.36, and 81.36. Looking for: Wave IV pattern.
On the four hour dollar index chart we notice a trend-line resistance area connected from wave A) and C) highs, where a recent turning point appeared. This may be an important bearish dollar signal, which will lead the major pairs if it holds. In this scenario the triangle pattern, shown on the chart below, is completed, especially if the 79.36 support gets broken before than 81.36 resistance.
On the other-hand, dollar strength will improve if the upper line of the triangle gets broken.
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