CAD/JPY forecasting the rally and buying the dips at the extremes

In this technical blog we’re going to take a quick look at the Elliott Wave charts of CADJPY, published in members area of the website. CADJPY is another Forex pair that we have been trading lately. The price is showing bullish impulsive sequences in the cycle from the March 73.78 low. Consequently, we advised members to avoid selling the pair and keep on buying the dips in the sequences of 3,7,or 11 swings whenever get chance. In further text we’re going to explain Elliott Wave Forecast and trading strategy.

CAD/JPY 4 hour Elliott Wave analysis 4.20.2020

Wave 4 red pull back is unfolding as Elliott Wave ZigZag Pattern. Inner labeling : ((a))((b))((c)) black . Pull back has already reached its equal legs zone at 85.77-84.64 , buyers area. However at the moment we expect to see short term bounce in (iv) blue and another marginal push down in (v) within blue box. We don’t recommend selling and favor the long side from the marked blue box . As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. Turn can happen any moment. As soon as the price reach 50 Fibonacci Retracement against the ((b)) black peak, we should make long positions Risk Free ( put SL at BE).

CAD/JPY 4 hour Elliott Wave analysis 4.21.2020

The pair made bounce and another marginal swing down, making 5 waves in ((c)) leg as well. Buyers appeared and we got nice reaction from the blue box . The bounce has already reached 50 fibs against the ((b)) peak. So, members who took long positions at the blue box should be in a risk free trade. Pull back 4 red is counted completed at the 85.40 low. As far as the price holds above 85.40 low, we expect further rally to continue.

CAD/JPY 4 hour Elliott Wave analysis 4.28.2020

85.4 low held nicely during the short-term pull back. The pair made further rally as expected. We would like to see break above 3 red to confirm next leg up is in progress. That will make pair bullish against the 85.40 low in near term.

Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.