Elliott waves for Forex correlation analysis – US Dollar loosing momentum

USDJPY – Down Wave Analysis: During the previous trading days, the US Dollar entered into a consolidation within the wedge after hitting the highs of 113.81 and will likely head to the lower side. We expect the current upper ward rally to be a mere correction of the anticipated downward rally and should not go beyond the upper trend line forming top of the wedge. Any clear breakout above this trend line will push the price further to the upper side but should not go beyond 113.81. Expect an exact opposite price action in EUR/USD and GBP/USD. These pairs have a strong negative correlation of the US Dollar of up -85% and will have an exact opposite price action during this intraday. Trade Recommendations: Wait for a clear rebound from the upper trend line to go short with the first target at 111.72. Any breakout below 111.09 will call for further short positions with next target at 109.51.
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