CAD/JPY Elliott Wave
Last week the CAD/JPY pair was trading downwards, corrective wave C (colored blue) of the bigger (4) wave (colored green) was developing. During the Friday's Asian and European session we could observe strong descending movement from 91.86 towards the 90.85 level and we can consider this movement as the end of the wave (5) (colored pink) of the bigger C wave (colored blue). Therefore, during the New York session this currency did not manage to hold this level, and price pushed higher. At the moment the CAD/JPY pair is trading around 91.65 level, and we are expecting the price to be above 94.50 level very soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 1+3 , we can define the potential targets with measuring waves 1 and 3 with take profit at 94.60 (61.8% of wave 1+3). To reduce the risk, we can use invalidation at 90.85 level as stop loss.
Support and Resistance
(S3) 90.34 (S2) 90.75 (S1) 91.00 (PP) 91.41 (R1) 91.82 (R2) 92.07 (R3) 92.48
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 91.80 with stop loss at 90.85 and take profit at 94.60 are recommended.
