AUDJPY outlook and its implications on equity markets

AUDJPY outlook and its implications on equity markets

The Australian dollar and Japanese yen (AUDJPY) currency pair could be embarking on a downward trend, according to a combination of Elliott Wave analysis and more standard charting techniques – which you can see from Chart 1 below. This potential downward trend may have implications for ASX200 equity investors.

Elliott Wave analysis aims to identify the direction of a trend by classifying a move as either impulsive or corrective, with impulsive moves occurring in the direction of the broader trend and corrections against. Looking at Chart 1, which shows weekly price data for the AUDJPY, a clear 5-wave impulse can be labelled from the April 2013 high of 105.428 to August 2013 low of 86.413. The move is broken up into 5 distinct phases, with waves 2 and 4 being the corrective w...

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