Elliott wave Analysis: CADJPY and AUDJPY Indicating More Weakness Ahead
Elliott wave Analysis: CADJPY and AUDJPY Indicating More Weakness Ahead
CADJPY is trading slow the past couple of days, but currently at interesting resistance levels. As you can see on the 4-hour chart CADJPY is in a bearish trend and current recovery from the lows looks like a complex correction known as a W-X-Y pattern. As we look closely, we can also see equality measurement of wave W and Y coming in, which can react as a resistance and slow current intra-day rally down. Also, wave 4 typically retraces exactly for 38,2% which is in EW theory an ideal resistance and reversal zone, so this Fibonacci ratio is another indication for more weakness. That said, we are watching this pair closely and if we get a drop from around 84.00-84.45 zone, then keep an eye on bearish level below 82.80 level.
CADJPY, 4h
CADJPY, 1h
Now switching to our AUDJPY look. AUDJPY made a nice reaction higher yesterday, away from our minor wave b swing low. We now see current recovery as final leg c of Y, which can see resistance and a new turn lower around the 82.55 level, where former swing high of wave 4 can push prices lower. Also, the upper corrective channel line can react as a turning point and push prices lower in impulsive fashion, which would later suggest a completed W-X-Y correction and more weakness to follow.
AUDJPY, 1h
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