Elliott wave analysis: Dax and USD/JPY Recovering Together

Good morning traders,

German dax made a new drop from latest swing high; we labelled wave C) of four which looks to have found support at the 12930 level, from where an intra-day recovery started forming. A continued rise above the 13190 area would suggest a completed wave 4, and further upside.

German DAX, 4h

If the stock martker is turning higher, then the XXX/JPY pairs can follow.

We see the EURJPY which can be trading in a triangle correction, because of slow, choppy and sideways contracting movement. We are tracking a leg d of a higher degree wave 4, which can look for resistance, and a turn into the final leg E near the upper triangle line.
Once all five legs are fully developed, and we see a break above the upper triangle line, that is when wave 5 may be in progress.

EUR/JPY, 4h

A Triangle is a common 5-wave pattern labeled 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 C, 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 3-3-3-3-3.

Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.

An EW triangle pattern:

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