Elliott Wave Analysis: Triangle On USDJPY Points To Lower Levels
USDJPY is trading higher for the last few weeks, and it finally broke above 104.34 swing so it appears that wave four correction since June is going to be more complex and longer in time. An updated wave count shows wave C) up from August that can still be part of a triangle formation which means that price can turn lower later this month for wave D), towards the lower side of a triangle range as shown on the 4h chart. If we are correct, then top for wave C) should be found around 104.50/105.00 area.
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 3-3-3-3-3.
Basic Triangle Correction: