Hello fellow traders. In this technical blog we’re going to take a quick look at the charts of CADJPY published in members area of the website. As our members know, CADJPY ended cycle from the January low at 85.23 peak, and as far as pivot at that high holds, we can be running new bearish cycle. Short term cycle from the April 17th peak is still in progress and we expect more short term weakness in the pair. Recently CADJPY gave us clear 3 wave bounce and reached important technical area from where we were calling turn lower. As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a pull back.
Let’s take a look at the charts of CADJPY.
CADJPY Elliott Wave 1 Hour Chart 5.1.2019
The pair is giving us short ter recovery against the 84.37 peak. The correction is unfolding as (a)(b)(c) Elliott Wave FLAT Pattern. The price is reaching important zone equal legs area, blue box at 83.26-83.67. However we believe the recovery is still in progress, when we’re still in iii of (c) of ((ii)). We believe wave ((ii)) Flat should complete at marked blue box area and sellers should appear for further decline toward new lows.
Wave (b) recovery was very deep, so we assume recovery is unfolding as FLAT pattern. Consequently last leg up, wave (c) needs to be 5 waves structure. You can learn more about FLAT patterns at our Elliott Wave Educational Web Page.
CADJPY Elliott Wave 1 Hour Chart 5.7.2019
Eventually sellers appeared and we got decline from the blue box area. Wave ((ii)) correction is completed at 83.36 high. We got 5 waves decline from the peak counted completed and labeled as wave (i) blue. Then we got clear 3 waves bounce wave (ii) against the 83.36 high . which is already counted completed at this stage. As far as the price stays below last short term high 05/06, wave (ii) blue is done there and we can be doing next leg down. We would like to see further separation lower and break toward new lows in order to confirm wave (iii) blue is in progress. We do not recommend buying CADJPY at this stage and favor the short side.
CADJPY Elliott Wave 1 Hour Chart 5.10.2019
05/06 peak held nicely and we got decline. As of right now the pair is doing short term recovery against the 83.34 peak. Price structure is suggesting more short term strength toward 82.12-82.31 area ( sellers zone). We don’t recommend buying the pair and favor the short side against the 83.34 pivot.
Keep in mind market is very dynamic and proposed view could have ended in the mean time. You can check most recent updates in the Membership Area of the Website . Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
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