CHFJPY Pattern Sets a Stage for a Correction
The daily chart above reveals CHFJPY's entire progress since October 2019 low. It looks like the past 4 months have resulted in a textbook five-wave impulse. The pattern is labeled (i)-(ii)-(iii)-(iv)-(v) and the five sub-waves of wave (iii) are also visible. Look how the entire structure fits into a base channel. The guideline of alternation has been taken into account, too. Wave (ii) is a complex correction, while wave (iv) is a sharp zigzag.
This pattern means CHFJPY’s larger trend points north. The problem is that according to the theory, a three-wave correction in the opposite direction follows every impulse.
If this count is correct, we can expect a notable decline in CHFJPY very soon. The support area of wave (iv) that lined up with support zone and mean value is a natural bearish target.
What's your view on CHFJPY?
This pattern means CHFJPY’s larger trend points north. The problem is that according to the theory, a three-wave correction in the opposite direction follows every impulse.
If this count is correct, we can expect a notable decline in CHFJPY very soon. The support area of wave (iv) that lined up with support zone and mean value is a natural bearish target.
What's your view on CHFJPY?
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