Elliott wave Analysis: GBPJPY and AUDJPY Can Both Turn Higher

Intermediate

GBPJPY is recovering, ideally in a five-wave manner, with price currently unfolding a corrective wave iv. This pullback can look for support, and a final bounce into the final wave v) around the Fibonacci ratio of 23.6 and 38.2 (145.4/145.22 region), and area where we see the upper base channel line.

A rally in impulsive fashion would confirm a completed correction, and wave v) to be in play.

GBPJPY, 1h

gbpjpy chart 2019-05-02

AUDJPY can be trading at the end of a bigger impulsive, bearish leg with final sub-wave v in play. If that is the case, then watch out for a potential low near the 78.00/77.60 region, where Fibonacci projection target of 161.8 can project end for the possible EW ending diagonal. In case price really is unfolding a EW ending diagonal, then be aware of a sharp recovery, which may follow once the pattern fully develops, and can take price towards the 78.93 level.

AUDJPY, 1h

audjpy chart 2019-05-02

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