NZDJPY Analysis: Bearish Trend Detected with Wave Pattern
Based on my analysis using Elliot wave theory, it appears that the NZDJPY is displaying a strong bearish trend. The wave patterns that I have observed across various timeframes suggest that the market is likely to experience a downward movement. Specifically, when examining the H1 chart on both intermediate and minor degrees, it appears that wave 3 (down) of a descending impulse is currently in progress.
According to my projections, the completion of wave 3 is expected to occur at the 77.88 price region on the intermediate degree. On the minor degree, it is projected to complete at the 81.51-81.12 region. Following this, I anticipate a brief rally in wave 4 of the minute degree to the 82.280-82.48 region before the market experiences a drop to complete wave 3 of the minor degree and wave 3 of the intermediate degree, respectively. The H1 S/R level is expected to provide strong resistance for the price at the 82.46 - 82.67 region.
It is possible that wave 3 of the intermediate degree may take several days to complete. Therefore, I will continue to monitor the chart and provide updates as necessary. It is important to note that if the price reaches 82.839, this outlook becomes invalidated.
According to my projections, the completion of wave 3 is expected to occur at the 77.88 price region on the intermediate degree. On the minor degree, it is projected to complete at the 81.51-81.12 region. Following this, I anticipate a brief rally in wave 4 of the minute degree to the 82.280-82.48 region before the market experiences a drop to complete wave 3 of the minor degree and wave 3 of the intermediate degree, respectively. The H1 S/R level is expected to provide strong resistance for the price at the 82.46 - 82.67 region.
It is possible that wave 3 of the intermediate degree may take several days to complete. Therefore, I will continue to monitor the chart and provide updates as necessary. It is important to note that if the price reaches 82.839, this outlook becomes invalidated.
Comment:
A reversal harmonic pattern was spotted on this pair, signaling a potential drop. However, a violation of this PRZ zone will invalidate both the pattern and my EW count.
Comment:
Quick update.
Trade closed: target reached
