After getting stopped out on the previous long trade based on the and measured move, we just got a completion of another two bullish patterns on the daily chart in FX:EURJPY . First of all we have the harmonic pattern which recently got completed right at 88.6% and 127.2% Fib ratio confluence zone. By using Fib extensions on previous moves, I was able to get a PRZ (potential reversal zone). This PRZ is located at 2015's lows, thus the stop has to be placed far enough to account for deeper movement of price action towards these lows, as well as accounting for the average true range (ATR) of this pair on the , which is roughly around 100 pips. Thus our stop placement level is 110 pips away from the 2015 lows.
Next we have the bullish pattern completing right close to the 127.2% Fib extension level. This pattern is also about to be completed within the PRZ, marked on the chart above. This stops loss and target levels will remain the same for both of the . Do note the MACD divergence, which adds into our overall view on this pair.
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