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CADJPY Chart Reveals a Bearish Elliott Wave Pattern

CADJPY Chart Reveals a Bearish Elliott Wave Pattern

CADJPY, another currency pair that has produced impressive gains over the long term is CADJPY. The rate soared from a pandemic-low of 73.81 dollars in March 2020 to as high as 110.53 dollars in September 2022. This rate was a staggering 110.53 in September 2022, up from 73.81 at the pandemic low of March 2020. Gains of 49.7% In two and a quarter years, the return on many stocks is comparable to that of the stock market over the same time period.

What the market gives, it takes away. CADJPY remains at a low level despite a 670 pip recovery since the middle of March. The September 2022 high is down nearly 1000 pips. The question then is: Can the recent rally be sustained or is it a correction in a larger downtrend? Let’s try and find out with the help of the Elliott Wave chart below.

The crypto, commodities, and stock markets also exhibit similar Elliott Wave patterns. You can learn how to find them with our Elliott Wave Video course!

The chart of CADJPY shows a five-wave pattern. We’ve labeled it (1)-(2)-(3)-(4)-(5) in wave I/A, where There are three degrees below the current trend. Wave (3) is a structure. Wave (5) is a diagonal ending. If the count is correct, this current recovery must be a part of a 3-wave correction in Wave II/B.

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