AUD/JPY is bullish since March of 2020, and it looks like it will continue its five-wave, bigger recovery. We specifically see a final wave 5 of a bigger impulse now underway, up from 75.6 level, where a running triangle in a former fourth wave fully unfolded. We see a firm rise, accompanied by a break above the upper Elliott wave triangle line, which puts bulls underway.
Wave 5 can now unfold a five-wave substructure, and target area at 79.5/81.0, where Fib. ratio of 100, and the middle Elliott wave channel line can react as resistance, and a reversal, and push price into a minimum, three-wave turn.
AUD/JPY, 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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