USDJPY as shown below had a very strong impulse higher from the 2011 low, traveling $50 or ~66% higher. That was the expansion and since the 2015 top we now have the compression. This makes perfect sense to me and I will attempt to explain it. The monster move from 2011-2015 was a motive wave meaning it was an impulse in the direction of the trend, one can clearly observe a 5 wave up sequence with perfect alteration. Wave 2 was very deep and sharp while wave 4 was shallow and sideways in a triangle, then the triangle expanded giving us our last leg up for a wave 5 with beautiful negative divergence. After a 5 wave sequence to the upside you should then get some sort of correction typically a ABC, you can see where I have wave A lower. Since the wave A low we have what looks like a compression pattern in a B wave triangle (Triangles occur in wave 4's and wave B's). As of now I believe we have a small degree wave C, typically in a triangle, wave C is the most complex and annoying which has played out in a flat so far. I fully expect this triangle to continue filling out as shown in the chart to complete black B.
After black B is over one can expect swift reaction lower that most likely will terminate since triangles are termination patterns. The targets for this expansion are labeled below and in reality if we break the 78.6% retracement level then the odds of this chart being correct dramatically decrease.