Elliott Wave Analysis: Triangle On EURJPY Points To Lower Levels

On 4h chart of EURJPY we have seen a strong decline below the triangle line so we assume that 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 seems to have turned into a resistance at 114-115 area.

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 into 3-3-3-3-3.