Swing projection: The EUR/JPY is definitely in consolidation mode in the daily time-frame since finding resistance at 127.70. The question is what structure will this consolidation wind up being. We had a downswing in February, and another swing appears to be developing so far in March. If the March swing is an analogy of the February swing, then an ABC correction could be developing. In this scenario, a A=C swing projection targets 117.00. A break below the current low near the 120.00 handle should favor this swing projection.
Triangle? However, this scenario is challenged by a triangle trendline seen in the daily chart. Looking at the 4H chart, you can see that price is breaking below a consolidation range, where the central pivot was around 123.00. If there is a pullback, but price action holds below 123.00, it is likely still within the context of a bearish swing. A break above 123.00 however favors the triangle consolidation.
