AUD/JPY Bounces Bullish (Wave 3 Expansion Phase) for FX_IDC:AUDJPY by NouzTrader — TradingView

AUDJPY

After an impulsive drop from the peak near 114.800, AUDJPY established a local bottom at 109.629, triggering a V-shaped rally to 112.500; it is currently completing a corrective retest above the lower grey Demand Zone box (110.200 – 110.600).

Current Price Action:
At the 110.546 price level, the latest H4 candle shows price holding its ground, evidenced by a lower wick rejection during the test of the lower grey box area.

The buyers’ success in maintaining the price above the previous Lower Low confirms the presence of buying absorption, setting the stage for a potential rebound.

—————————————————————————————————————

✅ Key Zones:
– ⚡Resistance / Supply Zone: The range around the green line at 111.648 (nearest local SBR resistance), 112.000 – 112.200 (middle grey box / primary Supply Zone), and the green line at 112.794 (macro Lower High peak).

– ⚡Support / Demand Zone: The range of 110.200 – 110.500 (lower grey box / local Demand Zone where the price is currently bouncing) and the green line at 109.629 (bottom-most grey box / Major Demand Zone / Structural Low).

—————————————————————————————————————

✅ Elliott Wave Analysis
Mapping wave cycle movements on the H4 timeframe:

⚡Wave Structure:
The V-shaped impulsive rally from the 109.629 low to the 112.500 area is calculated as an impulsive Wave 1 (or a macro Wave A). The corrective retracement from 112.500 down to the 110.300 area is currently identified as the completion of Wave 2 (a corrective wave taking the form of an ABC Zigzag pullback).

⚡Current Status:
Rejection (indicated by a lower wick) above the Demand Zone floor (110.200 – 110.500) signals the final stage of Wave 2’s completion, setting the stage for the launch of the major impulsive Wave 3 expansion.

⚡Projection:
Price action is projected to bounce upward from this Demand floor to initiate Wave 3, breaking through the 111.000 resistance and crossing the LVN zone. The move targets a test of the 111.648 green line, extending toward the Supply Zone stronghold near the 112.794 green line.