Elliott Wave Analysis On 10 Year US Notes And USDJPY

Gregor Horvat

10 year US notes shows a five wave of decline from July high which is a clear bearish pattern that should send prices even lower after any corrective set-back. The latest price structure, from the last 48 hours suggests, that market has room for a deeper pullback to make a nice A-B-C bounce; a zigzag pattern that can stop this week somewhere around 133’00 area. We will expect a strong drop from that region, as long as July high remains in place.

10 Year US Notes, 4 Hour Chart

USDJPY is trading sharply higher for the last two weeks, so it appears that pair finally found a bottom. On the 4h chart we are looking at bullish leg up from 100.00 area that is looking extended now so it can be wave 3) that seems to have found some resistance near the 161.8% Fibonacci extension target where price made a recent sharp reversal lower for a fourth wave pullback. Possible support for this correction may be around 104 area.

USDJPY 4 Hour Chart

Source: www.ew-forecast.com