In this technical blog, we will look at the past performance of the 1-hour Elliott Wave Charts of the CADJPY. The rally from the 07 December 2023 low showed a higher high sequence & provided a short-term extreme trading opportunity. In this case, the pullback managed to reach the equal legs area & provided a perfect reaction higher. So, we advised members not to sell it but to buy the equal legs area for a minimum reaction higher to happen. We will explain the structure & forecast below:
CADJPY 1-Hour Elliott Wave Chart From 1.25.2024
Here’s the 1-hour Elliott wave Chart from the 01/25/2024 Asia update. In which, the rally to 110.29 high ended wave 3 & made a pullback in wave 4. The internals of that pullback unfolded as Elliott wave flat structure where wave ((a)) ended at 109.21 low. Then a short-term bounce to 110.23 high-ended wave ((b)) & started the next leg lower in wave ((c)) towards 109.04- 108.31 equal legs area. From there, buyers were expected to appear looking for new highs ideally or for a 3-wave bounce minimum.
CADJPY Latest 1-Hour Elliott Wave Chart From 1.31.2024
Above is the Latest 1-hour Elliott wave Chart from the 01/31/2024 Asia update. In which the pair is showing a perfect reaction higher taking place from the equal legs area. Right after ending the correction. Allowed members to create a risk-free position shortly after taking a long position. But a break above 110.29 high would still be needed to confirm the next leg higher minimum towards the 110.75- 111.33 area before the next pullback takes place.
Source: https://elliottwave-forecast.com/forex/cadjpy-perfect-reaction-equal-legs-area/