I still can't believe my eyes when I see these crazy confluences.
First EURJPY started a 5 wave down move which I marked on the with the green lines.
Then it completed the whole down move and started to retrace the whole down move as an ABCD move to the upside.
For this it formed a head and shoulder pattern which is completed now and the CD leg has acted as the right shoulder.
Independently for an I use fibonacci projections to find the possible targets:
The 1.272 target of the AB leg lays on 138.67
And for the retracement of the whole down move I used fibonacci retracements which give me the important ratio:
38.2% at 138.67
It's crazy, isn't it?
And now for the fun part as to give you more confidence on this short trade, a is now forming which it's D point sits on 138.51 which creates a narrow range for the supply to flow in!
Now I short the EURJPY at 138.5 (to be more conservative).
I use three LOTs and close each on my different targets:
Target 1: 137.51
Target 2: 136.84
Target 3: 135.73
Stop Loss: 138.80
As you can see crazy risk/reward is involved.
Comment me your opinion and have fun trading this generous pair.
God bless EURJPY