AUDJPY recently made a new low below September 24 low which created an incomplete bearish sequence. Implications are for the decline to extend as far as the bearish sequence remains intact. In this article, we will look at some of the charts which called for this recent decline in AUDJPY, the level against which it has a bearish Elliott wave sequence and also look at the downside targets to complete this sequence. Our showed the decline from October 9, 2020 peak was impulsive and the bounce was expected to fail for extension lower, let’s take a look at that chart below.
AUDJPY 1 Hour Elliott Wave Analysis 10.23.2020
Chart below shows wave B completed at 76.52, down from there wave (i) completed at 75.44, wave (ii) completed at 75.91, wave (iii) completed at 74.23, wave (iv) completed at 74.95 and wave (v) of ((i)) completed at 74.17. This completed an and was followed by a bounce to 74.86 which we labelled as wave (a) and expected the pull back to hold above 74.17 low for another push higher to complete wave ((ii)) and then resume the decline.
AUDJPY 1 Hour Elliott Wave Analysis 11.02.2020
In the chart below we can see that AUDJPY did make another push higher and completed wave ((ii)) at 74.94. It then resumed the decline and broke below the previous wave ((i)) low in another impulse move within which wave i completed at 74.20, wave ii completed at 74.63, wave iii completed at 73.36, wave iv completed at 73.85 and wave v of (i) completed at 73.11. Now, we are in wave (ii) bounce which is expected to fail below 74.94 high for extension lower. 73.99 – 74.49 is 100 – 161.8 extension area of red a-b and is ideally from where the pair has scope to start wave (iii) lower or produce 3 waves reaction lower at least.
AUDJPY Downside Targets
AUDJPY while prices stay below 74.94 and more importantly below 76.52, the pair should continue lower and downside targets are 72.03 – 70.96.
