EW Analysis: GBPJPY and AUDJPY Pointing Lower After A Pullback
Hello traders. Today we will talk about XXX/JPY crosses, specifically GBPJPY and AUDJPY.
We have seen a nice turn down on XXX/JPY crosses, where we can count five waves of decline, so pullback may occur soon, especially if stocks bounce from support areas (S&P500 and DAX), since we know they are correlated.
We took a look on AUDJPY, which can be unfolding five waves down towards new lows, but be aware of a temporary correction in wave iv that can find resistance ideally around 38,2% Fibo. retracement and 80.60 area before a continuation lower into new lows for a wave v. As long as it's trading beneath 81 invalidation level, we will remain bearish.
GBPJPY as well turned sharply bearish within a five-wave drop, so we assume that five waves up from lows into wave A can be completed and a three-wave pullback can be underway. That said, be aware of a deeper three-wave a-b-c correction that can find support around ideal 50%-61,8% Fibo. retracement and 142.80 – 142.00 area, from where a new bullish cycle back to 145.70 highs may occur, while it's trading above 139.90 invalidation level.
We have seen a nice turn down on XXX/JPY crosses, where we can count five waves of decline, so pullback may occur soon, especially if stocks bounce from support areas (S&P500 and DAX), since we know they are correlated.
We took a look on AUDJPY, which can be unfolding five waves down towards new lows, but be aware of a temporary correction in wave iv that can find resistance ideally around 38,2% Fibo. retracement and 80.60 area before a continuation lower into new lows for a wave v. As long as it's trading beneath 81 invalidation level, we will remain bearish.
GBPJPY as well turned sharply bearish within a five-wave drop, so we assume that five waves up from lows into wave A can be completed and a three-wave pullback can be underway. That said, be aware of a deeper three-wave a-b-c correction that can find support around ideal 50%-61,8% Fibo. retracement and 142.80 – 142.00 area, from where a new bullish cycle back to 145.70 highs may occur, while it's trading above 139.90 invalidation level.
Comment:
UPDATE: GBPJPY continues to fall sharply within first wave a, so be aware of a three-wave corrective recovery in wave b soon, while AUDJPY already turned into a three-wave pullback of iv, which may take some time, before another leg down for wave v.
Comment:
UPDATE2: AUDJPY is moving much faster, already unfolded a three-wave (a)-(b)-(c) corrective rise into wave iv, from where it sharply turned down for a projected wave v, where Bears may slow down in new lows around 79 area. GBPJPY may take some time, but we will tracking it step by step.
Comment:
UPDATE3: As expected, GBPJPY made a nice three-wave recovery into wave b, so be aware of another leg down into wave c towards ideal 61,8% Fibo. retrcament and 142 support area. AUDJPY is still trading in wave iv, probably a triangle corrective pattern, which suggest another leg down towards 79 for a wave v.
Comment:
UPDATE4: AUDJPY went exactly as expected! It has unfolded a five-wave decline towards 79 and now we should be aware of a reversal! But GBPJPY still has room towards 142 support level, from where we may see a bullish reversal. Watch out!