Elliott wave Analysis: CADJPY Again Turning Bearish

Hello traders!

CADJPY is currently dropping from the 89.23 level, indicating that a bigger three-wave complex correction since March found a top at that upper channel line, and that bears are again in play. We labeled that drop from the high as wave 1), which found a base at the 84.34 level, which means in Elliott Wave theory a new temporary pullback as wave 2 may now follow. Wave 2) is a pullback and represents a pause within a trend and usually unfolds a simple zig-zag pattern. It is structured by three waves, A-B, and C, which can in our case look for resistance and a bearish reversal around the Fibonacci ratio of 50.0 and 61.8.

A decisive drop below the 84.34 low would confirm a completed wave 2) correction and more weakness.

CADJPY, Daily

CAD/J

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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