Written by Elliott Wave Analysis Service |
USDJPY is reversing nicely from around 97.00 support area, but for now we still do not have a five wave rally that would confirm low in place and start of bullish development. We need more price action, but rally towards 98.30 will suggest that pair is in wave three of first five wave move. In such case, long opportunities could be in wave (iv) for (v) up but even better in black wave 2 for big wave 3 up. We will be tracking this pair very closely in days ahead. If 97.50 and 97.20 supports will give way, then we will know that down trend in wave E) is still incomplete.
German DAX made three waves down from September highs and then reversed from the gap area in impulsive fashion out of the corrective channel which suggests that prices will continue higher. Notice that also decline from 8700 to 8582 is in three waves that could represent wave (ii) of a new five wave bullish cycle. As such, strong rally could be seen, but 8558 and more importantly 8550 must hold. Those levels could also represent a stop region.
German DAX 1h
Written by Elliott Wave Analysis Service
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