Elliott Wave Analysis: AUDJPY May Have Found The Top

٢ مايو ٢٠٢٢

Hello traders! Today we will talk about AUDJPY pair in which we see a completed Elliott wave five-wave bullish cycle and potential top formation after recent break below strong trendline.

In Elliott wave theory, we always have to expect a minimum three-wave reversal after a completed five-wave cycle.
We are now observing a minimum three-wave A/1-B/2-C/3 decline, where wave C or 3 can be already in play.

The main reason why AUDJPY could be turning down is strong support on US bonds and also still bearish looking stocks in current risk-off sentiment. A positively correlated SP500 is just about to break Feburary 2022 lows, which can easily send AUDJPY pair lower, at least towards 88 area for wave C, if not even down to 85 area for wave 3.

Trade well!
If you like what we do, then please like and share our idea!

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.