USD/CAD and USD/JPY Elliott Wave Cycles Point Lower

Notice that pair broke the trendline support of a base channel last week which normally occurs within wave three of an impulse, thus we think there can be more weakness coming, firstly to around 1.2450 and then possibly even to 1.2250-1.23 area. The short-term invalidation level is now at 1.2625; as long it holds the bearish impulse is expected to resume lower within wave 3/C.

USDCAD 4h Elliott Wave Analysis

Chart, line chart

Description automatically generated

USDJPY has been very bullish through 2021 but now it may face a limited upside since we are seeing a fifth wave trying to complete wave c of a higher degree wave d) that can belong to a multi-year triangle. However, calling a top can be too soon since we are not seeing a completed five waves down from recent high when looking at the 4h chart, but so far it looks promising with recent extensions below the base channel support line.

If pair will rise back above 115.05 then market may stay sideways for a big triangle.

USDJPY 4h Elliott Wave Analysis

Graphical user interface, chart

Description automatically generated