CADJPY - 1000pips down ✅ What's Next?

In our last CADJPY analysis, we mentioned that the top was in place for CADJPY and to watch for the completion of the 2nd wave ABC correction. We saw a deeper retracement than anticipated but we still remained below the high. Price went on to move lower 1000pips.

As we're in wave 3, we were looking for 5 subwaves. We can see that we're currently in the 5th subwave of wave 3. Once that is complete, we'll be looking for a correction for wave 4. Price needs to remain below the blue structure = good invalidation level to have.

Trade Idea:
- Watch for Wave 4 correction to lead towards the blue structure
- enter on break of wave 4 correction with stops above correction (safer stops above blue wave 4 invalidation structure)
- Targets: Wave 3 completion, hold until you finish counting 5 subwaves down for wave 5

Goodluck and as always, trade safe!

See our previous CADJPY analysis below