USD/JPY Eyeing 106.05/105.14 Support – Elliott Wave Analysis

Technical analysis of Forex market

USDJPY is in a three-wave corrective reversal, after the intial five-wave rise at the beginning of March. We know that once an impulse fully develops (in this instance wave A), that is when a contra-trend reaction may follow (wave B). At the moment we see price still choppy and sideways, ideally unfolding a triangle consolidation in wave B, which is a continuation pattern, and which also suggest one more push lower into wave C. Once a triangle unfolds, wave C may show up and take price towards the 106.05/105.14 area.


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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.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.