NZDJPY The bigger picture - Squeezed in a multiyears triangle
Updated
From the wave created by the 2007 ATH to the 2008 global crash and ATL the pair's price action has hammered out a large multi year triangle, currently in wave D as shown on the chart. Price is expected to move higher the coming year or so, before the final correction in to wave E and completion of wave B in a large 3 waves flat pattern. Of course, we cannot be sure which path price will take from here, and in all honesty there are other possible Ellitowave counts. However, this is the one that looks most plausible to me as it also points towards that we eventually not only will complete this pattern around 2024 but also finally get out of the global financial crises that was initiated 2008.
Comment
The Covid-19 Omicron (B.1.1.529) variant threw a wrench in to the works of market at the end of last week and it's still too early to say what kind of damage it has caused to the longer term picture. From the information that has come through over the weekend it appears as if we have had a risk-off overreaction, once again. The move in the Euro across the markets was very suspicious in my view and I expect much of it, if not all and potentially more, will be retracted. Maybe the coming week already. In any way, I like to see more data as the week takes off before I make updates to my charts, but cautiously I think this can be a buying opportunity. In fact, if Omicron competes out Delta and proves to present much milder symptoms, resulting in less hospitalizations and decreasing death figures then we may be in for an even stronger risk-on move going forward. However, it's early days yet so let's wait for the data.
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