E NZD/JPY And NZD/USD - Elliott Wave Analysis

Hi traders,

Today's article is about NZDJPY and NZDUSD and their positive correlation. We see both aiming higher for a temporary correction.

NZD/JPY made a drop recently, down from 76.41 level which is a suggestion that a top for a bigger degree five-wave impulse had been found and that a minimum three-wave reversal can be in play. As such we labeled current decline as wave a, which can once completed push price into a temporary correction as wave b with resistance near the 76.10 level. That said, the whole three-wave decline can reach the 75.388 area in the upcoming sessions.

NZD/JPY, 1h

NZD/USD can be trading in a five-wave decline rather than a more complex three-wave drop, with current weakness from the 0.6786 level representing sub-wave v) of three. We can see current price approaching interesting support regions where the middle/lower channel line and the Fibonacci ratio of 161.8 can slow bears down and push the price into a new correction of a higher degree, with possible resistance near the 0.6764 level.

NZD/USD, 1h

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