CHF/JPY Bullish Elliott Wave Sequence

In this article we will take a look at the Elliott Wave structure of the CHF/JPY pair since the low on April 16. The move up from April 16 (107.67) to May 25 (115.16) was in 7 swings and completed wave (W), then we saw the pair pull back from the highs.

Below is the 480 minute chart presented to clients on June 11 where we were looking for pair to end the correction in 112.87 – 111.52 area and resume the rally for new highs.

CHF/JPY 11 June 480 minute chart

CHF JPY 30 June 480 minute chart

The pair found buyers in the blue box between 112.87 – 111.52 and rallied to new highs as expected. With the latest rally from 112.46 – 117.78, the pair is showing 5 swings up from the 4.16.2017 low which is a bullish sequence and calls for more upside against 112.46 low to complete a double three Elliott wave structure.

The pair has reached the 0.618 – 0.764 Fibonacci extension area of (W)-(X) between 117.00 – 118.18 which is the typical area for a 5th swing to end in a 7 swing sequence. Thus we are expecting the pair to make a pull back in wave B and continue higher towards the 119.95 – 121.72 area.

We don’t like selling the pair in a proposed wave B pullback and expect dips to find buyers in 3, 7 or 11 swings for a continuation higher. If the pair drops from here, the 116.23 – 115.94 range would become the next area of interest for wave B to complete buyers to appear to start C leg higher or bounce in 3 waves at least.