Saturday, March 6, 2010

AUD/JPY 4 Hour Chart

 
There has been a lot of speculation recently on risk aversion returning to the markets with a big fall in commodity currencies against the Yen. However following the NFP release this evening (I am in Australia) there has been a sizable increase in risk appetite. This has led to strength in the AUD/JPY and CAD/JPY (another pair many Elliotticians have been focusing on of late). Above is my 4 hour chart of the AUD/JPY pair. I think there is still more upside to come (similar to the CAD/JPY) before a major reversal. I will be watching for a clear 5 wave move up before I look to get short. 

Below is a close up of the B wave down which several people seem to count as a 5 wave move.

 

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