USDJPY breaks higher as inflation came at 1.8% down from 2.5% expectations, and 2.6% prev reading. Thats very interesting reading. Who would think of this data considering how expensive are commodities for them, including oil, with recent drop of JPY. But it puts less pressure on BoJ to hike. Maybe more time is needed for inflation to show up and that's when they will hike, in coming months.
EURUSD came down as expected to a new low after wave 4 corrective rise so price is now seen in wave back, back at 1.0830 support. Therefore, the wedge shape may suggest limited weakness and slow price action in weeks ahead, as wave (A) can be coming to an end, but more weakness will show up after wave (B) rally that can show up in sessions ahead. As such, we think that higher degree correction is still underway and it can be much deeper as EURUSD pair might have completed a five-wave rise at around 1.1280 back in July. However, we will once again turn bullish on the euro once the corrective A-B-C drop will come to an end, but at the moment that's clearly not the case yet.
Gold is bullish on higher time frame charts where we expect a break to new ATH high, but ideally, this will occur after the current complex correction is completed. Notice that recovery from 1970 to 2070 was made by three waves, ideally it was wave B as part of a higher degree fourth wave that can be even a triangle. If we are correct then more slow and sideways price action will show up to complete the pattern, ideally still some time this month when we will start looking up towards 2100. If we are correct then 1958 and 1971 levels should hold as a support. If they are broken then the structure and trend will change.
Elliott Wave Forecast, Author at Action Forex actionforex.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from actionforex.com Daily Mail and Mail on Sunday newspapers.