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AUDJPY set for further decline as Elliott Wave signals turn lower
The analysis says an invalidation level near 112.6119 was marked after the pair topped around 112.61, and a breakdown over 400 pips followed.
Action Forex used Elliott Wave structure to interpret the recent AUDJPY move, saying the pair was completing a 3 wave rally from about 108.90 and topping near 112.61, which it linked to wave 2, or ((c)) of 2.
After a red Turning Down tag appeared near 112.61, Action Forex identified 112.6119 as the invalidation level and said AUDJPY then broke down sharply, completing a 5 wave impulse with wave ((iii)) of 3 near 108.50.
The outlet said the decline ran for more than 400 pips, with price later consolidating around 110.11, and it characterized the action as a double corrective bounce in wave ((iv)).
As long as the pair stays below the invalidation level, Action Forex expected another leg lower in wave ((v)) to finish wave 3, followed by a corrective bounce in wave 4 and a final swing lower in wave 5 of (C) of ((2)).