Hello fellow traders,
NZDJPY recently broke below the recent swing low of wave D of a bigger triangle correction, which now suggests a completed triangle, and a bearish continuation. If that is the case, then a five-wave drop may follow into a higher degree wave C), targeting 60.0 region.
On the 4h chart of NZDJPY we have a closer look of the impulsive cycle that got underway at the 73.21 high. We can see five fives down to 67.55 area, from where a new, temporary, corrective pause may have started to take place. As you know, in Elliott wave theory once a five-wave (impulsive) move is completed, that is when a three-wave pullback may follow. Now we are tracking a corrective wave 2 which can unfold a simple zig-zag pattern, and can look for resistance near the 69.5/70.2 region. At the mentioned zone, bears can again take over.