Elliott Wave Analysis On EURJPY And SILVER
On the 4h chart of EURJPY, we are tracking a triangle in the middle of a big downtrend that should continue towards 109.00 area after a five wave sideways pattern is finished. For now however, bearish trend should not show up yet, as we see pair trading down into wave D, so we still need wave E before we may consider a breakdown.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
Basic Triangle Pattern:
Silver broke beneath the 18.30 level but higher degree charts still show a three wave of a decline from above 21.00 area. It's a correction within ongoing uptrend that will be expected to resume later this year. We see room for current wave C towards the 16-17 area where metal may look for a support.