CADJPY Elliott Wave view suggests that the decline to 87.78 ended Minor wave X. The pair starts a new rally from there, asas where Minute wave ((w)) ended at 89.8. Minute wave ((x)) pullback is currently in progress to correct the cycle from 10/31 low in 3, 7, or 11 swing before the rally resumes, provided that pivot at 10/31 low (87.78) stays intact. Subdivision of Minute wave ((x)) is unfolding also as a double three Elliott Wave structure where Minutte wave (w) ended at 88.96 and Minutte wave (x) ended at 89.64.
Near-term, while bounces stay below 89.8, we expect the pair to extend lower in Minutte wave (y) of ((x)) towards 88.56 – 88.76 area before it resumes the rally higher or at least bounce in 3 waves. We don’t like selling the pair.
CADJPY 1 Hour Elliott Wave Analysis
Double three (7 swings) is the most important pattern in Elliott wave’s new theory. It is also probably the most common pattern in the market these days. Double three is also known as a 7-swing structure. It is a very reliable pattern that gives traders a good opportunity to trade with a well-defined level of risk and target areas. The image below shows what Elliott Wave Double Three looks like. It has labels (W), (X), (Y) and an internal structure of 3-3-3. This means that all 3 legs have corrective sequences. Each (W) and (Y) is formed by 3 wave oscillations and has a structure of A, B, C or W, X, Y of smaller degrees.
