Elliott Wave View: AUDJPY Should Remain Supported

Short term Elliott Wave view on AUDJPY suggests that the rally from June 18 low is unfolding as a zigzag Elliott Wave structure. A zigzag is an ABC structure with 5-3-5 subdivision. The rally from June 18 low ended wave A at 76.28 as a 5 waves impulse. Up from June 18 low, wave ((i)) ended at 74.77, and wave ((ii)) ended at 74.32. Pair then rallied higher again and ended wave ((iii)) at 75.62, then wave ((iv)) pullback ended at 75.3. Wave ((v)) of A ended at 76.28 and this ended the cycle from June 18 low.

Pair is currently correcting cycle from June 18 low within wave B. The internal of wave B is unfolding as a double zigzag Elliot Wave structure. Down from 76.28, wave ((w)) ended at 75.4 as a zigzag. While wave ((x)) bounce fails below 76.28, pair has scope to extend lower within wave ((y)) as another zigzag structure before ending wave B. Afterwards, pair should resume higher again. We don’t like selling the pair and expect buyers to appear and dips to be supported in 3, 7, or 11 swing as far as pivot at 73.9 low stays intact.