darcsherry

EURJPY | Perspective for the new week | Follow-up

Short
FX:EURJPY   Euro / Japanese Yen
Just like the situation on our GBPUSD , we experienced a 300pips move in our direction since my last publication on this pair (see link below for reference purposes) and with the present market structure, it appears we are at another juncture that "screams" for a selling opportunity.
Even as a momentary price increase is envisaged on this pair considering the pressure from the bulls during last week trading session and this might lead to a break out into Y132.500/133.000 level before a decline happens.

Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. Even as we are in a long term Bullish situation, "quick sells" from participants who took advantage of the Bullish run appears to be happening at the moment and I suspect that the price might decline to around the Y129.000 area before the rally begins... Why?
ii. The significant Breakdown of Y132.350 (my new Key level/Trendline) on the 17th of June 2021 which appears to be followed by what looks like "rejections" of this same level between 23rd and 25th of June 2021 points at the possibility of diminishing Bullish momentum.
iii. While looking forward to entry opportunity below Key level, I foresee a transition into a Harmonic pattern (AB = CD) in the coming week with parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg currently falls at 61.8% with the potentials of extending to 78.6% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext . of the A-to-B @ Y129.000 area.
iv. A Further plunge below Y131.000 (breakdown/retest) might welcome an addition to the existing position.
v. CAUTION: It is important that I state here that the overall perspective to this pair is Bullish (see weekly chart) and if the price remains above Key level, the whole narrative shall be rendered invalid and a Bullish perspective shall be immediately adopted at Break above/Retest of Trendline... Trade consciously! 😊
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:5
Potential Duration: 5 to 10days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.


Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.