JPY Could Gain More Based On The S&P Outlook-Elliott Wave

by Admin

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Markets recovered slightly in the last 24 hours after a strong sell-off on Monday. The reason for a small bounce in prices is coming from good economic data from the US with better than expected CB Consumer Confidence (69.6 vs. 60.8) and New Home Sales (473K vs. 381K). Federal Reserve Chairman Mr. Bernanke had a speech yesterday and defended QE program, but even so markets did not recover much at the time.  I am looking on the S&P Futures here and see that current recovery is mainly technical; pull-back within larger downtrend.

From an Elliott Wave perspective we see a double zig-zag from the lows headed up to 1498-1500 resistance area.  Sell-off from those levels could be seen that will support the USD and JPY against other majors.
S&P Futures 1h

USDJPY is also showing corrective price action, but incomplete a-b-c move with triangle in the middle.  Resistance comes in at 92.80, if tested. In any case bias is down! This count is pointing for more downside on xxx/JPY pairs.
USDJPY 30min