The day chart for AUDJPY, applying Elliott Wave analysis, indicates a bearish trend within an impulsive market structure. Currently, the wave structure is initiating a downward move, identified as orange wave 1 within the larger navy blue wave 3. This points toward a bearish trend onset.

The navy blue wave 2 seems complete, and orange wave 1 of 3 is underway, marking the beginning phase of the larger wave 3 sequence. This wave structure projects a continued decline, as the impulsive nature of orange wave 1 within navy blue wave 3 suggests a further bearish trajectory. The progression of navy blue wave 3 strengthens the bearish outlook, supporting additional downward movement as orange wave 1 advances. This is consistent with typical wave 3 patterns, which are known for significant movements aligning with the primary trend direction.

The wave cancel level is set at 109.333. If AUDJPY rises above this point, the current Elliott Wave interpretation would be deemed invalid, indicating that the downward structure may need reassessment. However, remaining below this level supports the ongoing downward trend, reinforcing the continuation of navy blue wave 3.

Summary

AUDJPY’s daily Elliott Wave analysis presents a strong bearish trend led by orange wave 1 within navy blue wave 3. With navy blue wave 2 considered complete, the chart suggests further declines, provided the price remains below 109.333. This setup aligns with a bearish outlook, pointing to a continuation of the downtrend as navy blue wave 3 unfolds.

AUD/JPY Elliott Wave technical analysis

Function: Bearish Trend.

Mode: Impulsive.

Structure: Orange wave 1.

Position: Navy blue wave 3.

Next lower degree direction: Orange wave 1 (initiated).

Details: The navy blue wave 2 appears to be complete, and orange wave 1 of 3 is now active.

Wave cancel level: 101.574.

AUD/JPY four-hour chart analysis

The 4-hour Elliott Wave analysis for AUDJPY indicates a bearish trend within an impulsive market structure. Currently, the pair is developing an impulsive structure, identified as orange wave 1 within a broader navy blue wave 3, suggesting the early stages of a downward movement. This setup follows the likely completion of navy blue wave 2, signaling the end of its retracement phase and the beginning of a new downward sequence in navy blue wave 3.

With orange wave 1 now active, the analysis suggests the bearish trend will likely continue in the near term. This wave represents the initial movement within navy blue wave 3, which could amplify the downward trend if the wave structure remains intact. The next lower degree is expected to maintain the current trend, as the impulsive nature of orange wave 1 within navy blue wave 3 points to a stronger bearish move as navy blue wave 3 unfolds.

The wave cancellation level, set at 101.574, is a critical invalidation point for this wave count. If AUDJPY rises above this level, the current bearish wave interpretation would need to be revised, signaling a potential shift in market sentiment or trend structure. However, staying below this level reinforces the projected bearish outlook in this analysis.

Summary

AUDJPY’s 4-hour Elliott Wave analysis signals a bearish trend with an impulsive structure led by orange wave 1 within navy blue wave 3. The trend appears poised for continued downward movement, provided the price remains below the wave cancel level of 101.574. This setup indicates a potential extension of the bearish trend as navy blue wave 3 progresses in the short term.

AUD/JPY Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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