EURJPY Advance Is a Leg of a Triangle

Looking at EURJPY, it appears the advance from the May 2020 low is wave D of a triangle in Elliott Wave terms.

Zooming in, this wave D would be more than half way there. Measuring out the harmonics, its appears a reaction may take place in the 132-134 price zone if EURJPY makes it that high.

This doesn't mean that prices HAVE to make it to this zone or that prices HAVE to reverse. This simply means this 10 month long advance is mostly complete...there isn't a lot of real estate left to operate with.

If you are a day trader, you could filter your traders for bullish ideas until you get closer to 132.

For the swing trader, keep on eye on the purple/yellow price channel...namely the support line of the channel. If that line breaks, then we are at risk of a heavier correction.

The triangle pattern is negated at 137.51. If EURJPY breaks above 137.51 then we'll consider other alternate counts.

Drop a note below if you have comments or questions and if you would like to see more analysis similar to this.