Elliott Wave Analysis: Triangle on EURJPY Seems Completed; More Weakness Could Now Follow

On the 4h chart of EURJPY we have seen a strong decline below the triangle line so we assume that the pattern in wave B can be finished so traders may look and expect more weakness down into wave C, especially after a re-test of that broken trendline that can turn into a resistance at 114-115.

EURJPY, 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 subdivide 3-3-3-3-3.

Basic Triangle Pattern:

Get the 5 most predictable currency pairs^[1]

References

1. ^{^} Get the 5 most predictable currency pairs (www.forexcrunch.com)

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/ICN67E7F3Bc/

from Online Forex Trading Resource http://its-veso.tumblr.com/post/151095173067