Elliott Wave View: CADJPY Starts Next Bullish Leg

Short term Elliott Wave view on CADJPY suggests that the rally to 82.4 on Jan 9, 2019 ended wave (W). Pair then corrected in wave (X) as a double threeElliott Wavestructure and the dip ended at 81.25. Down from 82.4, wave W ended at 81.42, wave X ended at 82.17, and wave Y of (X) ended at 81.25.

Since then pair has made a new high above wave (W) at 82.4 suggesting that the next leg higher in wave (Y) has started. The rally from 81.25 can unfold in various structures. We propose a 5 waves impulse Elliott Wave structure in the rally higher. Up from 81.25, wave ((i)) ended at 82.07 and wave ((ii)) ended at 81.5. Wave ((iii)) is in progress and should subdivide as another impulse of lesser degree. Two more highs in wave ((iii)) and wave ((v)) should happen before wave A ends.

Afterwards, it should pullback in wave B to correct the cycle from 1/14 low (81.25) before the next leg higher starts. As far as the pullback stays above 81.25, we expect pair to extend higher within wave (Y). Next potential target is 61.8 76.4 Fibonacci extension of (W)-(X) at 84.9 85.75.

CADJPY 1 Hour Elliott Wave Chart