AUDJPY can be unfolding a big, bullish impulse, up from 59.89 level, where a former bigger correction had ended. We see waves 1, 2 and 3 completed of a bigger recovery, so current sideways price activity can belong to an Elliott wave triangle within a corrective wave 4. It can be a running triangle pattern, that is now in final stages, so be aware of possible new highs, within a wave 5 of A), once the triangle fully develops.
After higher degree impulse as wave A) fully develops, a bigger contra-trend reaction as wave B) may start unfolding. Support is at 72.51/70.16 level.
AUDJPY, daily
On the 4h time frame of AUDJPY, we see price in final stages of a running triangle pattern, which is now unfolding a leg e, with support at Fib. Ratio of 61.8 (75.6/75.2 level).
Once all five legs within a triangle fully develop, and we see an impulsive price recovery above the upper triangle line, that is when wave 5 of A) may start forming.
AUDJPY, 4h
A Triangle is a common 5-wave pattern labelled 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 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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