Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of EURJPY published in members area of the website. As our members know, the pair has been trading lately within Elliott Wave Flat structure. In further text we’re going to explain the forecast and Elliott Wave Pattern. Before we take a look at the real market expample of Expanded Flat, let’s explain the pattern in a few words.
Elliott Wave Expanded Flat is a 3 wave corrective pattern which could often be seen in the market nowadays. Inner subdivision is labeled as A,B,C , with inner 3,3,5 structure. Waves A and B have forms of corrective structures like zigzag, flat, double three or triple three. Third wave C is always 5 waves structure, either motive impulse or ending diagonal pattern. It’s important to notice that in Expanded Flat Pattern wave B completes below the start point of wave A, and wave C ends above the ending point of wave A which makes it Expanded. Wave C of expanded completes usually close to 1.236 Fibonacci extension of A related to B, but sometimes it could go up to 1.618 fibs ext.
At the graphic below, we can see what Expanded Flat structure looks like.
EURJPY Elliott Wave 4 Hour Chart 4.18.2018
Current view suggests cycle from the 03/05 low is unfolding as Elliott Wave Expanded Flat Structure. Cycle is mature and we have already reached extremes from the 03/05 and 03/23 lows. Equal legs from the 03/23 low comes at 132.64-133.37 ( marked blue box) . Although cycle can complete any moment, there is no any sign yet confirming Expanded Flat structure is done. So, we see possibility of another short term leg up toward 1.236 Fib extension , approximately: 133.73 area.
EURJPY Elliott Wave 1 Hour Chart 05.05.2018
Eventually we got leg higher wave 5 of (C) which has broken slightly above 1.236 fib extension ( 133.37). Expanded Flat completed on April 24th at 133.49 high and we got the decline.
Note: blue box on the chart below comes little lower comparing to previous chart as marked area is extreme zone from the 03/05 low.
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