Triangle on AUDJPY In Final Stages! – Elliott wave
AUDJPY can be ending a big, bullish triangle pattern within a corrective wave 4, which was in action since June of 2020. We can see five potentially completed legs in a triangle, where final leg e looks to have find support at the 75.6 level. That said, latest sharp rally is first evidence that the pattern can be completed, and that more upside may be seen into a wave 5 in days/weeks ahead. That said, we would still like to see a decisive break in impulsive fashion above the upper triangle line, which would be another evidence for a completed fourth wave. Possible resistance target for a wave 5 can be at 79.0/80.9 level.
AUDJPY, 4h
A Triangle is a common 5-wave pattern labelled A-B-C-D-E that moves countertrend 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 into a 3-3-3-3-3 form.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in a wave Y of a combination.
Running triangle in uptrend:
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