Short term Elliott Wave view in Nikkei suggests the decline from 3/29/2022 peak is unfolding as a zigzag Elliott Wave structure. A Zigzag is a corrective structure labelled as ABC with 5-3-5 subdivision. Down from 3/29/2022 peak, wave A ended at 25555 and rally in wave B ended at 28401. Wave C lower is in progress as a 5 waves impulse. Down from wave B, wave (i) ended at 26195 and rally in wave (ii) ended at 26960. Index then resumes lower in wave (iii) towards 25615, wave (iv) ended at 26235 and final wave (v) ended at 25525. This completed wave ((i)) of C. Wave ((ii)) of C is now in progress to correct cycle from 6/9/2022 high before the decline resumes.
Internal subdivision of wave ((ii)) is unfolding as a zigzag structure in lesser degree. Up from wave ((i)), wave (a) ended at 26555 and dips in wave (b) ended at 26005. Wave (c) higher is in progress to complete wave ((ii)) before the decline resumes. Potential target for wave ((ii)) is 100% – 161.8% fibonacci extension of wave (a) which comes at 27040 – 27675 area. Index should then resume lower or pullback in 3 waves at least. Near term, as far as pivot at 28401 high remains intact, expect rally to fail in 3, 7, or 11 swing for further downside.
