The daily and 4h view of USDJPY
USDJPY is trading in a bigger triangle correction on the daily chart and is ending a leg D with its three sub-waves. We see a possibly completed sub-wave C) of D near the 110.3 region, from where price started dropping impulsively, and is now approaching the lower corrective channel line. A breach below this channel line will confirm that wave D is completed, and that wave E, final leg of a triangle is unfolding.
USDJPY, daily
Regarding the 4h chart, we see price developing impulsively from the 110.27 area, giving us evidence that a new three-wave move lower: A/1, B/2 and C/3 is unfolding. We know that an impulse is structured by five legs, which means once five legs are visible, wave A/1 may start looking for support, and correction as B/2 may show up.
USDJPY, 4h
As you see on the chart, wave B/2 correction may take the price towards the 109.36/109.64 zone, where a new turn lower may be seen.
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 E, 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.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
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