USD/JPY Stuck in a Triangle
-Short term triangle keeps the larger triangle pattern in play
-An immediate move below 117.28 negates the short term triangle
-Look for resistance 119-120 to end wave D of a bullish triangle
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The USDJPY has been stuck in a sideways range since December and appears to be carving out a larger degree 4th wave triangle. That means that each of the 5 sub-waves of the triangle should shape up as a zig-zag, triangle, or combination between them.
Indeed, the price action for the past week appears to be carving out a smaller degree triangle. Triangles are one of my starting points in identifying a wave count because there are only certain places in the count where triangles form.
Therefore, this smaller degree triangle is in play so long as we are above 117.28. Use this level as risk for a revisit to the 119-120 handle.
USD/JPY 2 Hour Price Chart
Other Recent Elliott Wave Counts:
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Elliott Wave Analysis for EUR/GBP (6 minute video)
AUD/USD Carves an Equal Wave Pattern (6 minute video)
Not sure what an equal wave pattern is? Watch this 10 minute video.
Additional tools to identify levels and sentiment on USDJPY:
The DailyFX Plus Technical Analyzer (free registration required)
Speculative Sentiment Index (free registration required and provides access to the Technical Analyzer too)
-Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
Follow me on Twitter at @JWagnerFXTrader .
See Jeremy’s recent articles at his DailyFX Forex Educators Bio Page.
This article uses Fibonacci ratios to follow a variety of patterns including Elliott Wave. To learn more about Fibonacci ratios, register to take this free 20 minute on demand course. Register here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.