Market Overview: Japanese Yen Concerns, Risk-off Sentiment, and Gold's Momentum

In the Asian session, Japanese Top Currency Diplomat Kanda stressed the importance of preparing for a potential rise in interest rates.

However, uncertainty remains regarding the Bank of Japan's exit from its negative rates policy, keeping USDJPY in a sideways pattern within an uptrend.

Elsewhere, some risk-off sentiment is apparent, with close attention needed on US stock futures this week, especially if the S&P 500 breaks out of a wedge pattern, signaling potential further weakness.

A screen shot of a graphDescription automatically generated

Conversely, metals are performing strongly. Notably, after an initial uptick in the USD following the report of higher-than-expected US CPI on February 13, it later retreated. Since then, EUR and GBP have shown resilience compared to AUD or NZD, with MXN also gaining momentum. Gold continues to shine, with the likelihood of further gains after pullbacks.

A screen shot of a graphDescription automatically generated

Personally, I'll be closely monitoring gold for a wave four pullback and potential long positions thereafter.


Love the Elliott Waves analysis? Check our video from yesterday here, or visit us at for more.