Short-term Elliott wave view in CADJPY suggests the decline from October 21, 2021 peak is unfolding as a zigzag Elliott Wave structure. Down from October 21 peak, wave ((A)) ended at 87.82 and rally in wave ((B)) ended at 90.36. The internal subdivision of wave ((B)) unfolded as an expanded Flat structure. Up from wave ((A)), wave (A) ended at 89.12, dips in wave (B) ended at 87.68. Pair then extends rally higher in wave (C) to 90.36. In the 45 minutes chart below, we can see the internal subdivision of wave (C) in 5 waves. Up from wave (B), wave 1 ended at 88.19 and wave 2 ended at 87.88. Pair then resumes higher in wave 3 towards 89.92, pullback in wave 4 ended at 89.47, and final leg higher wave 5 ended at 90.3. This completed wave ((B)) in higher degree.
Pair has turned lower in wave ((C)), but it still needs to break below the previous low at 87.68 to validate the view. Down from wave ((B)), wave 1 ended at 89.09, and rally in wave 2 ended at 89.6. Pair then resumes lower in wave 3 towards 88.37, rally in wave 4 ended at 88.69, and final leg lower wave 5 ended at 88.05. This completed wave (1) of ((C)). Wave (2) rally is now in progress to correct cycle from December 8, 2021 peak before the decline resumes. Rally should unfold in the sequence of 3, 7, or 11 swing and as far as pivot at 90.36 high remains intact, expect pair to resume lower.
