Stocks are holding support after Fed's Powell's encouraging statements on monetary policy tightening, but crude oil keeps moving higher based on the situation in Ukraine.
With recent jump on stocks we are also see JPY crosses moving higher, in line with USDJPY. In fact USDJPY has nice five waves up so looks like more upside can be coming as 10 year US yields finds support. Plenty of pairs trying to stabilize; with GBPJPY and EURJPY making a failure breakdown, while NZDJPY and AUDJPY trying to confirm a break higher.
USDJPY is trading sideways for the last few weeks which now looks more and more like a bullish triangle, so we should be aware of more upside after recent pullback down into final wave E). A Break above 115.85 can lead to a breakout within a new five-wave cycle for the fifth wave, while the price is above recent wave 2) swing low.
USDJPY 4h Elliott Wave Analysis
GBPJPY came nicely lower in the last few weeks, but it looks like a three-wave drop from around 158.00 that represents wave E, the final leg of a higher degree triangle. As such, be aware of more upside now, after a bounce away from 152.90 support. Intraday recovery looks impulsive so we will favor more upside after retracements.
GBPJPY 4h Elliott Wave Analysis
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