AUDJPY Is Looking Bullish – Elliott wave analysis
AUDJPY is trading bullish, up from March of 2020. We specifically see a completed five-wave cycle in wave A) at the 78.44 level, which was then followed by a probable completed corrective wave B), at the 73.12 level. Price did almost reach the area of a former wave 4, which can in many cases become support. That said, our first evidence that a wave B) is completed and more upside awaits can be an impulsive rise from the 73.12 level, and a break above the upper corrective channel line, connected from the highs.
In case we only get a three-wave move from the 73.12 level, and later a new sharp decline towards the 72.5 zone, then this would suggest corrective wave B) to still be underway, and bulls to be temporarily on hold.
On the 4h chart of AUDJPY we have a better look at the impulsive structure from the 73.11 level. We see a completed five-wave recovery in wave 1, and a possibly completed wave 2 at the 75.38 level. Latest price recovery can now be part of a higher degree wave 3, which is also an impulse, therefore five legs within it are expected.
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