Elliott Wave Analysis of CAD/JPY 4/12/2019

There is a opportunity for high reward in comparison to a relatively small risk in the near with this pair. My thought process is that an entry on the wave 2 retracement of an impulse of a smaller degree to target the wave extensions of a higher degree. The entry is on the hourly to four hour time-frame while targeting a profit level of a swing trade (daily and weekly). There was a strong impulse in early January that broke the downtrend that this pair was in, and this created a new Elliott wave cycle. A strong impulsive move up that retraced to the 50% level on March 25th helped to prove that analysis. There was then a five wave impulse back to the higher side in a smaller degree, and this move is almost at the point where profit should be taken due to the length of the fifth wave in comparison to the first (It is currently at the length of the first wave, but it could continue further up to 1.62 or 2.62). A correction will more than likely occur here soon, and this will lead to a long opportunity that could be held for quite a long time. If an entry were to occur at the 61.8% level of the first impulse (the one that started on March 25th) then one could realistically risk a very small amount of capital to hold for quite a long time. In summation, this would be an entry two degrees lower than the move that we would attempt to catch, meaning that the risk to reward could potentially be quite high.