Elliott waves for Forex correlation analysis – Buy euro around 111.09

USDJPY – Down

Wave Analysis:

The US dollar is currently trading with an increasing bullish momentum. Yesterday, the price broke out above the short term resistance level 111.09, and is still pretty much above it. As long as it protects the lower side, we expect a possible momentum to the upper side. We expect the current downward rally to be the unfolding of the corrective wave (b) and should not go beyond 111.09, where we’ll be looking to buy the impulsive wave (c) towards 111.93 or even higher. This view can only be rendered futile in case the price gets below 111.09, this being the case, we expect a rally towards 110.15. This pair should be traded alongside CADJPY, HKDJPy and USDCHF. These pairs have a strong positive correlation and may move in the same direction.

Trade Recommendations:

Buy euro around 111.09 with your target at 111.09

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