After yesterday’s slow price action during the US session, we have seen some upside on Nikkei index, so I am wondering if maybe USDJPY can catch the gains here and fill the gap. After all, we are looking and waiting on a wave C) to put a low on USDJPY, but we have to see 110.94 level breached, to make sure that bulls woke up.
USDJPY 1h vs Nikkei225, 1h
If USDJPY will really start to climb higher then our attention would be on some of the commodity currencies vs JPY. So far, I like CADJPY or even AUDJPY better after this bounce from the lower side of a range, so this one can be interesting for more upside but after a completion of a triangle; wave D is now in play and wave E) yet to come! Maybe this wave E) will fully unfold once SP500 futures completes a bigger three wave decline from the highs. At the moment we are tracking a three-wave pullback(the second big wave), which can look for resistance around the 2830 area; so more weakness expected on the S&P500.
AUDJPY, 4h
SP500 Futures, 30Min
