Euro/yen sharply falling away from this level

The euro/Japanese yen (EUR/JPY) currency pair is currently sharply falling away from 132.43 level, which made me think, that maybe a bigger EW flat correction can be in the making within wave B. A flat is a 3-3-5 pattern, where leg a and b have both three minor legs, and final wave c has five of them. As we look on our chart, we can see both a and b having three legs, so current turndown can be final wave c of B.


EUR/JPY, 3-min


A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern. It has a structure of 3-3-5.