USD/JPY eyeing higher as US yields find the support

Gregor Horvat Wavetraders

Stocks are in risk-on mode with higher metals, and crude oil as well despite the fact that the European Union approved the eighth package of sanctions against Russia, including a price cap on Moscow’s crude oil and refined products. More importantly, we see the 10 year US yields waking up despite some dollar sell-off, so wondering if this can bring back some risk-off sentiment if yields will resume back towards the highs. We see ongoing impulse, now eyeing higher into a fifth wave. The further upside here can be bullish for USDPY, which has a nice-looking bullish Elliott wave pattern; with five waves up followed by a-b-c pullback.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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