USDJPY dropped sharply yesterday, well bellow a channel support connected from September low which suggests that market completed a five wave rally up in black wave (c) of C-circled. Decline is also very aggressive, so we believe it's part of a bigger three wave drop that can continue even to 101-102 area for wave D-circled based on an Elliott Wave triangle count.
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 subdivides into 3-3-3-3-3.
Weekly chart - I personally see the move down from July 2015 as a correction to the trend. That being said, the failed move down from July this year may be a failed 5th wave of C.
Move up to 4th September is my wave 1 of the new trend, 21st Sept wave 2, and the recent peak is the wave (1) of 3
That being said, alternative - price bounces to 103, and then goes back up as a rocket.
I most certainly am not saying I'm right and you're wrong, just sharing a different angle.
FXStrggl
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Correction, make that 102 the next bouncing price :)
TomPower
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@ahabaevbg, not sure how u deduced it was a rocket from that 102 but u couldn't have been more right, well done!
ew-forecast
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No, glad your shared your idea. Well i personally think that because of so slow and overlapping price movement, we are still in a triangle.
Intraday bounce may be wave b.
donaldsaw
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Love the count and is exactly what I am seeing as well. Im short from 105.00 - Good luck
JC_Saints
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looks like the triangle was not the right idea, but that explosive move up is tough to count. Maybe the low is august 16 (truncated bottom). Is it a 1-2, 1-2 ?? and it is 3rd of 3rd
Move up to 4th September is my wave 1 of the new trend, 21st Sept wave 2, and the recent peak is the wave (1) of 3
That being said, alternative - price bounces to 103, and then goes back up as a rocket.
I most certainly am not saying I'm right and you're wrong, just sharing a different angle.