EURJPY 30m chart potential Falling wedge
The the 30m chart the EURJPY is forming a potential falling wedge. On the chart infront, you can discover a bullish market structure
Additional confluences:
- Price has dropped to the support range created from the previous major high
- The price is testing the 0.382 Fib. Have in mind that the 0.5 and the 0.618 levels are also in the support range so it is possible for the price to drop lower. If it does, monitor if it's still in the ranges of the falling wedge. If it goes out of them, then the pattern will be invalidated.
- Price is close to the 200 EMA, Might drop a bit lower to test it before providing a potential breakout of the pattern to the up side
Additional confluences:
- Price has dropped to the support range created from the previous major high
- The price is testing the 0.382 Fib. Have in mind that the 0.5 and the 0.618 levels are also in the support range so it is possible for the price to drop lower. If it does, monitor if it's still in the ranges of the falling wedge. If it goes out of them, then the pattern will be invalidated.
- Price is close to the 200 EMA, Might drop a bit lower to test it before providing a potential breakout of the pattern to the up side
Comment:
Price produced a breakout candle but after that followed with a strong correction. Now it dropped to the 0.5 Fib. If the price bounces to the up side from this level, there is stil lchance for this formation. If it breaks lower, the pattern will be invalidated and we will need to look for a different entry..
Order cancelled:
Pattern has failed. The price can still provide a good increase from those levels but you need to look for a different entry factor
Comment:
After a bit more drop, the price formed a double bottom and then produced the expected increase. Congratulations to everyone who cought it :)