Hello fellow traders. In this technical article we’re going to take a look at the Elliott Wave charts charts of NZDJPY forex pair. NZDJPY has recently made pull back against the 83.5 low that has unfolded as Elliott Wave Double Three Pattern. It made clear 7 swings from the peak and completed correction right at the Equal Legs zone. In further text we’re going to explain the Elliott Wave pattern and forecast
Before we take a look at the real market example, let’s explain Elliott Wave Double Three pattern.
Elliott Wave Double Three Pattern
Double three is the common pattern in the market , also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they can have W,X,Y labeling.
NZDJPY Elliott Wave 4 Hour Chart 07.27.2023
The pair has made 5 waves up in the rally from the 83.5 low which is considered to be wave (3) of larger bullish cycle. Current view suggests the pair can be still doing (4) blue correction that is unfolding as Elliott Wave Double Three Pattern. Pull back has WXY red inner labeling. First leg W is showing corrective sequences – 3 waves down ((a))((b))((c)). So, we assume Y red leg should also have 3 waves structure. Pull back looks incomplete at the moment, we expect to see another leg down toward 85.22-84.4 equal legs- buyers zone.
NZDJPY Elliott Wave 4 Hour Chart 07.30.2023
NZDJPY made extension down toward marked zone 85.22-84.4 and found buyers as expected. Bounce already reached 50 fibs against the X red connector. Consequently, any long positions from the equal legs area should be risk free by now. We call wave (4) completed at the 84.95 low. Once the pair make a break of (3) blue high, it will confirm next leg up is in progress.
