Elliott Wave Analysis: Triangle On EUR/JPY Points Lower
Gregor Horvat | Oct 17, 2016 10:04AM ET
On the 4h chart of EUR/JPY, we are tracking a triangle in the middle of a big downtrend that should continue towards the 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.
EUR/JPY, 4H
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 Pattern:
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