EURJPY is showing us a complex, overlapping and slow correction, which we see it as a Elliott wave triangle pattern. We see current triangle trading in final stages, with leg E searching for resistance. Resistance can be seen near the Fibonacci ratio of 61.8, from where a new drop lower can come in play. Later a new drop towards red wave C) can follow.
EURJPY Hourly Chart
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
Contracting Triangle Pattern