EURJPY In For Further Uspide Within an Elliott Wave Leading Diagonal – Elliott Wave analysis

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It seems that a probable Elliott wave leading diagonal can be in progress from the lows on EURJPY with a price ending a fourth wave correction, so be aware of one more leg higher, before a temporary A-B-C correction starts developing.

EURJPY, daily

On the 4h chart of EURJPY, the pair made a strong turn higher after corrective wave 4 found a base at the 119.23 area last week. We labeled a completed double zig-zag in 4 which can now be followed by a five-wave move to the upside with sub-wave I already completed. If that is the case, then corrective wave ii may take price into a temporary pullback; possible support for wave ii can be at 119.9/119.7 region.

EURJPY, 4h

When diagonal triangles occur in the fifth or C wave position, they take the 3-3-3-3-3 shape that Elliott described. However, it has recently come to light that a variation on this pattern occasionally appears in the first wave position of impulses and in the A wave position of zigzags. The characteristic overlapping of waves one and four and the convergence of boundary lines into a wedge shape remain as in the ending diagonal triangle. However, the subdivisions are different, tracing out a 5-3-5-3-5 pattern.

  • structure is 5-3-5-3-5
  • a wedge shape within two converging lines
  • wave 4 must trade into a territory of a wave 1
  • appears in the wave one position in an impulse, in the A wave position of A-B-C

Elliott wave leading diagonal:

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Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!