Carry Trade – Weekly Overview
In this week’s analysis, we assess the evolving dynamics across currency markets, examine the underlying signals, and outline the scenarios that could shape the next macro move.
CANDLES
This week, the Dollar likely capped the three-week moderate pullback, which was carefully executed while keeping all trends and technicals bullish on the short- and mid-term frames. The carry trade approaches the end of the month with a solid bullish perspective on the long-term frames.
USD/JPY remains bullish across all frames, supported by a healthy trend and a solid technical backdrop.
ELLIOTT WAVES
The long-term targets for USD/JPY remain intact. While a larger wave 4 scenario is still possible, its probability has been diminishing following the February close and declined further in April.
Summary
The carry trade remains constructive across most timeframes. Continued Dollar strength remains the primary path.
The very long-term outlook stays firmly bullish, with broader structural targets intact.
