Short term Elliott Wave view in NZDJPY suggests that decline from January 5, 2022 peak is unfolding as a 5 waves impulse structure. Down from January 5 peak, wave (1) ended at 75.24 on January 28 and rally to 78 ended wave (2) on February 10. Internal subdivision of wave (2) unfolded as a double three Elliott Wave structure. Up from wave (1), wave W ended at 76.78, pullback in wave X ended at 75.96, and wave Y ended at 78 which also completed wave (2).
Wave (2) in this case ended at the 100% – 161.8% Fibonacci extension of wave W, suggesting the entire rally from wave (1) low is corrective 3 waves. Pair has turned lower in wave (3) but to rule out a double correction, pair still needs to break below wave (1) at 75.24. Down from wave (2), wave ((i)) ended at 76.9 and wave ((ii)) rally ended at 77.53. Wave ((iii)) ended at 76.35, wave ((iv)) ended at 76.93, and wave ((v)) of 1 ended at 75.85. Wave 2 rally is in progress to correct cycle from February 11 high in 3, 7 or 11 swing before pair resumes lower. Near term, as far as pivot at 78 high remains intact, expect rally to fail in 3, 7, or 11 swing for further downside.
