Another possible position for the position traders out there on the daily chart of the EUR/JPY.
Before the X point, price became slightly volatile- rapidly rising and falling- before resuming it's natural wave south. Using the X from the high following the retracement we find a bearish bat formation.
Bat Ratios B = 0.382-0.5 C = 0.382-0.886 D = 1.618-2.618 X to D = 0.886
The higher the timeframe you use, the more fundamental they become so please be aware of what's happening in the market when analysing this pattern. And by all means use the lower time frames to judge an entry.
See below my previous bat on the JPY against the AUD where we have seen the Yen gain significant strength. Will the Yen strength continue?
Comment
⋅
You can see where price has hit a resistance zone, while the bearish trendline is also looming overhead.
Comment
⋅
Looking at the current state of price at the top of the C-D wave, you can see the direction price may take should the small trendline on the daily/4 hour chart be broken.
I am waiting for the 138/140 level before the short. EURO currently is super strong and after the cool down of the stock collapse (which is the sole reason for the Yen strength) it will head back up. I will look forward for the drop. It looks juicy
KyleMcQuade
⋅
@Jamal92, The drop does look juicy! That sounds like a good area, you won't want to wait too long incase you miss the move though! I', confident price will hit the first TP level at 127.5! From there the standard process is to re-enter with half the position.