From an Elliott Wave perspective, the AUD/JPY signals a violent recoil higher in compelling impulse Wave ((3)) move on a test of support marked by the confluence of a former counter-trend support at 69.97 (invalidation level), formed by the corrective downward (A)-(B)-(C) 5-3-5 zigzag formation brewing since 27th December 2019.
The pair may retrace to 70.70, a 88.6% retracement of the contracting leading diagonal pattern ((1)) to unfold wave ((2)), combined with the downtrend channel connecting wave (A) and (B) that helped cauterize resistance over the last trading days. A resumption of the pair may regain its footing to 77.26 to 81.31 region, matching a projection of 100% to 161.8%.
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