Image Source: Pexels
 

AUDJPY Elliott Wave Analysis Trading Lounge Day Chart, 17 January 2024

Australian Dollar/Japanese Yen(AUDJPY) Day Chart

AUDJPY Elliott Wave Technical Analysis

Function: Counter Trend

Mode: impulsive  

Structure: blue wave 3 of C

Position:  black wave C

Direction Next Lower Degrees: blue wave 3(started)

Details: Blue wave 2 looks completed at 97.813.Now blue wave 3 may start. Wave Cancel invalid level: 97.804.

The "AUDJPY Elliott Wave Analysis Trading Lounge Day Chart" dated 17 January 24, provides a comprehensive analysis of the Australian Dollar/Japanese Yen (AUDJPY) currency pair using Elliott Wave theory on a daily timeframe. The analysis focuses on deciphering potential market movements, particularly within a counter-trend context.

The declared "Function" is identified as "Counter Trend," signaling that the analysis is centered around potential movements contrary to the prevailing trend. Counter-trend analyses are crucial for traders seeking to identify reversal points or corrective phases in the market.

The specified "Mode" is characterized as "Impulsive," indicating that the market is currently exhibiting strong, directional movements. Impulsive phases are typically marked by rapid and robust price movements, which are key for traders to identify potential trading opportunities.

The primary "Structure" is described as "Blue wave 3 of C," indicating that the current analysis is situated within the context of a larger Elliott Wave count. The Elliott Wave theory posits that financial markets move in repetitive patterns or waves, and the analysis is currently focused on the development of the third wave within the larger corrective structure labeled C.

The identified "Position" is labeled as "Black wave C," suggesting that the ongoing impulsive move (Blue wave 3) is part of a larger corrective pattern labeled as Black wave C. Corrective structures generally consist of multiple sub-waves, and understanding their progression is crucial for traders.

In terms of "Direction Next Lower Degrees," the analysis points to the anticipated "Blue wave 3 (started)." This implies that following the completion of the current corrective structure (Blue wave 2), the next impulsive move (Blue wave 3) is expected to commence.

The "Details" section notes that "blue wave 2 looking completed at 97.813." This suggests that the corrective wave labeled as Blue wave 2 likely concluded near the mentioned price level.

The "Wave Cancel invalid level" is identified as "97.804." This level serves as a critical reference point, and if the market surpasses this level, it would invalidate the current wave count, prompting traders to reassess their analysis and potentially indicating a change in the anticipated market direction.

In summary, the AUDJPY Elliott Wave Analysis for the daily chart on 17 January 24, suggests that the market is in a counter-trend scenario, with the completion of a corrective wave (Blue wave 2) and the potential start of the next impulsive move (Blue wave 3). Traders are advised to monitor the progression of the impulsive move and consider the invalidation level at 97.804.

Technical Analyst: Malik Awais

More By This Author:

Elliott Wave Technical Analysis: BTCUSD - Wednesday, January 17
Elliott Wave Analysis: S&P 500, Nasdaq 100, DAX 40, FTSE 100, ASX200 Trading Strategies
Elliott Wave Technical Analysis Day Chart: British Pound/Japanese Yen - Tuesday, Jan. 16