CAD/JPY - Daily

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Recently you may of noticed comments about a 5 wave move down in the CAD/JPY. A large move lower is a possibility, but first we need to consider what astronomy is telling us about price action. The number labeling on this chart is not intended to be E.W. counts.

The daily trend visible on this chart can be described without question as sideways. There are 3 major lows that we will focus on today. These lows have been used as starting points (ephemeris) for calculations indicated by the rising blue lines. These blue lines track the heliocentric orbit of Mercury.

The rally from each low creates a 3 wave move. The rallies which are labeled "1" use the Gann multiplier of 2x1. Upon termination of the rallies labeled "1", we see a decline labeled "2". After this decline is finished, the next rally is labeled "3." These rallies labeled "3" use the Gann multiplier of 1x2. The pattern of a 2x1 speed for the first leg up, and a 1x2 speed for the second leg up is repeated. The evidence of this repetition will now form our first important data point from which to assess the speed of future price moves.

Now we will focus on declination cycles. The red declination indicator tracks the Moons declination degrees around the Earth. The blue declination indicator tracks Mercury's declination degrees around the Sun. From this comparison we can understand that the Moon has a much faster declination cycle. Choosing declination cycles will depend on the degree of wave which you are trying to trade.

The first price rally is tracked by the Moon declination cycle of "A" and "B." We see that the rally terminated after a full declination cycle took place. The second rally sequence is tracked by the labels "C" "D" "E." These letters indicate a Moon declination cycle time of 1.5 revolutions. After the Moon completed 1.5 declination cycles, the price rally terminated. This pattern now forms our second important data point from which we can assess future price moves. From this we can speculate that the next rally could expand by an additional .5 declination cycle OR we can speculate that the next rally will take 1 to 1.5 declination cycles to complete. Both of these patterns are justified from the data assessed. The forecasted rally which has been labeled "F" and "G" hasn't even been in occurrence for half of one declination cycle yet. The standard cycle pattern seen in CAD/JPY leads to the conclusion that this rally, be it corrective or not, is not ready for termination at this point in time.

Forecast
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First price target of 86.92 is expected to be reached by 17/02/2010. From 86.92, a decline can be expected. This decline will be followed by another rally which will take price up to 88.03 by 11/03/2010. There is a possibility this rally could extend until 17/03/2010, at which point price would meet major resistance at 88.90

The major termination dates (11/03/2010 & 17/03/2010) occur when the Moon is between 1.5 and 2 full geocentric declination cycles. These dates share confluence with the Mercury price speed multiplier of 1x2 for the second leg of a rally.