USDJPY finally broke to the upside yesterday, above former swing high but rally has then stopped at 99.40 from where we have seen a sharp almost 200 pip fall. If we take a closer look now on whole rally from 96.55 then we can see that recovery has unfolded only in three legs which is bearish structure that is pointing now lower, back to 96.55, especially once lower support line of a corrective channel gives way.
USDJPY Elliott Wave 4h
Elliott Wave Education: Zig Zag Pattern
A zig-zag has a 3 sub-wave structure labeled A-B-C. Generally Zig Zag moves counter to the larger trend. Zig-zag is one of the most common corrective Elliott wave patterns.
5-3-5 Sub-wave structure
Wave A must be a motive wave
Wave B can only be a corrective pattern
Wave B must be shorter than wave A by price distance
Wave C must be a motive wave.
It appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes
Written by www.ew-forecast.com
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