AUD/JPY Elliott Wave
This week the AUD/JPY pair was trading downwards, impulsive wave 4 (coloured purple) of the bigger wave (3) (coloured blue) was developing. Yesterday, during the Asian session we could observe ascending movement from 94.37 towards the 95.01 level. Therefore, during the European session this exotic currency did not manage to hold this level and the price retraced back to opening price. Today the AUD/JPY pair is trading around 94.85 level and we expect to see the price above 102.00 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the waves 1 we can define the potential targets with measuring wave 1 with take profit at 102.06 (100% of wave 1). To reduce the risk, we can use invalidation at 92.95 level (end of 4 wave) as stop loss.
Support and Resistance
(S3) 93.54 (S2) 93.94 (S1) 94.18 (PP) 94.57 (R1) 94.97 (R2) 95.21 (R3) 95.60
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 95.00 with stop loss at 92.95 and take profit at 102.06 are recommended.