#CADJPY Elliott wave analysishello dear traders and colleagues. Lets have a look at a very long term chart of CADJPY.
If we want to interpret the chart using Elliott wave principle we can see from the bottom that we have completed a 5 wave impulsive bullish move (corrective wave 4 is running flat formation) and then we can see a 5 wave bearish impulsive (which also labeled as wave A).
Now that the price reached the top unless we are witnessing a running flat we can expect that the bullish move as wave B is also reached its destination and from now we can wait for the wave C to be completed.
Initial target would be the previous low if we assume that this large corrective formation is regular flat.
For opening a position in case you want to use candle stick patterns you can wait for the weekly close and see if price formed evening star which seems possible.
Other than that you can always wait for price to penetrate the previous low or perhaps triggers can be found in lower time frame and following the lower time structure.
Also it should be noted that in case price close above last week high or close above resistance level this wave analysis is invalid.
Please let me know if you like this kind of long term analysis.
