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, this week, the carry trade likely took only a technical pause while maintaining solid bullish signals across all 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 diminishing following the February close.
Summary
(as discussed on March 6)
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.
