Starting a new impulse wave. Note that EW contracting triangle e wave was already complex, while only one of those waves inside of contracting pattern can be complex fifth wave should be running now. This is daily chart, but contracting triangle appears also in monthly chart. Upcoming
QE Japan to power this.
The Yen and the Nikkei have been moving together for many months now. Actually the Yen has been leading the major price moves by a few trading days. The correlation can be seen in the symmetrical triangle that began back in May. Notice how the Yen tops and bottoms before the Nikkei. These moves are most obvious in points A, C, and D.
Currently the Yen is...
Since Nikkei 225 has 0.94 correlation with SPY i found the analysis interesting in order to get more insight on next plays on S&P 500.
Without any doubt the Japanese index is consolidating since its may top this year. This will ultimately lead to 2 scenarios:
1- NIKKEI is in a descending triangle pattern formation, prices will test support of this triangle,...
Index have entered the resistance zone from the sell-off that printed the year highs while testing a fib level. I see a high probability of a down movement.
Let's see...
