On the 4h chart of EUR/JPY we are tracking an Elliott Wave triangle in the middle of a big downtrend that should continue towards the 109.00 area once five wave sideways pattern is finished. For now however, bearish continuation is not here yet, but it can show up soon as we see price in blue wave E of B that can be looking for a top around the upper side of an Elliott Wave triangle pattern. Based on time projection, pair may turn south early next week.
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 subdivides into 3-3-3-3-3.
Basic Triangle Correction:
