Carry Trade – Weekly Overview
In this update, we examine the technical structure behind the carry trade — from trend dynamics and momentum signals to long-term wave projections — to assess whether Dollar strength is set to expand or transition into a prolonged consolidation phase.
CANDLES
Despite global turbulence, the carry trade remains technically healthy and completed the first week of March with solid bullish signals on the weekly and smaller frames. All mid- and long-term trends remain bullish, and the carry trade continues to look technically healthy.
ELLIOTT WAVES
The long-term targets for the USD/JPY pair remain intact. While the development of a larger wave 4 scenario is still possible, its probability has been reduced following the February close.
Summary
The carry trade has recovered from the strong bearish posture seen at the beginning of February. The odds favor continued Dollar strength.
The very long-term outlook remains bullish. Broader structural targets remain intact, and the recent weakness appears corrective within a larger uptrend.
