In the short term, Elliott Wave View suggests that the AUDJPY rally from the March 19 low shows an incomplete sequence favoring further upside. The rally is currently taking place in the form of a three-part structure. Up from the March 19 trough, the wave (W) ended at 67.7 and the recession in wave (X) at 64.37. The inside of wave (X) unfolded in the form of a zigzag where wave A ended at 64.86, wave B ended at 67.27 and wave C s’ is finished at 64.37. The pair picked up higher in wave (Y) and broke above wave (W) at 67.7, suggesting that the next higher step has started.
Upstream of wave (X) at 64.37, the rally takes place while a zigzag structure with the first leg wave ((a)) ends at 67.67 driven by 5 waves. Wave (i) of ((a)) ended at 65.61 and wave (ii) of ((a)) ended at 64.81. The pair resumes higher in wave (iii) of ((a)) around 66.80 and wave (iv) of ((a)) ends at 66.4. The final wave of step (v) ended at 67.67, which also completed wave ((a)). The decline in wave ((b)) also ended at 66.4. In the short term, while the declines remain above 66.4 in the first degree and 64.37 in the second degree, the pair should extend higher. The higher potential target is the wave ((c)) = ((a)) which is located at 69.7 – 70.4.
AUD / JPY 1 hour Elliott Wave Chart
AUD / JPY Elliott Wave Video