Elliott Wave Analysis: CADJPY Could Be In For A Reversal

As you might know, we are looking higher on stocks based on Elliott Wave structure after only three waves of decline on E-mini S&P500 from 2400 highs. So more upside on stocks is normally bearish for Japanese yen, in risk-on environment. At the same time we see Oil prices in bullish mode as well which can be supportive for the Canadian dollar. What all that said, CADJPY can be an interesting pair in the coming sessions and days. Not only because of those market correlations, but also because of the wave structure which shows wave C) down to be an ending diagonal; this is a reversal pattern which can already be pointing to the upside if we consider five waves up on 30min chart.