Elliott Wave Analysis: USDJPY Daily and Intraday Forecast
On the daily chart of USDJPY, we can see bigger sideways price action unfolding, which can be a triangle correction in the making. An Elliott wave triangle correction is a continuation pattern, which means after it unfolds a new push in the direction of the trend may follow (in our case this is to the upside). Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination; they are overlapping five wave affairs that subdivide 3-3-3-3-3.
All being said, we now see sub-wave C) of a triangle in wave 4 being made, that can in days ahead search for support around the lower triangle line.
On the 4h chart we are observing the higher degree leg C) and its three-wave structure. In a triangle pattern, each leg has its own three legs, which are corrective in nature. Current price action suggests sub-wave C of C) unfolding, that can search for support near the Fibonacci ratios of 61.8/78.6. Once red wave C) unfolds, a new three wave correction can be expected to follow into the following wave D) of a triangle pattern.
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
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