Elliott Wave Analysis: USDJPY Searching For A Temporary Support; Area 100/102 Seems Probable
USDJPY has turned sharply lower last week, away from 105.50 area where we think that market accomplished a three wave rally up in wave C) that belongs to a big Elliott Wave triangle. As such, a new three wave decline can be underway now, this time for wave D) towards 61.8-78.6 Fibonacci levels, where short-term support may cause a new leg up; wave E).
So as things stand right now, we think that despite US elections break out of 197.47-99.00 range may not occur so soon.
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.
Basic Triangle Pattern: