USD/JPY found support in this week around 95-96 level as expected from where a sharp rally suggests that the market accomplished wave C of a triangle and that price is now moving higher in wave D, still only fourth leg within complex correction. But we need five of them, so be aware of more choppy and overlapping price action in 95.80-101.50 range in days ahead before market breaks to the upside.
What is a triangle in Elliott Wave Theory?
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.
- structure is 3-3-3-3-3
- each subwave of a triangle is ussaly a zig-zag
- wave E must end in the price territory of wave A
- one subwave of a triangle usually has a much more complex structure than others subwaves
- appears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a tripl