On this chart we are looking at a Cypher harmonic pattern that has formed on EURJPY.
It meets a couple of the rules that I use, 1) it has entered the Bollinger Bands, 2) It has met the entry price (not shown) 3) But the RSI is a little iffy and 4) the MACD is not diverging.
What is interesting about this one is I have gone ahead and put on the ichimoku cloud with a setting of 13, 26, 13 and it kind of leads me to believe that this harmonic pattern will not be playing out. Why? the long-term trend from ichimoku standpoint has been going up.
We're going to see how this plays out and use it for future analysis.