We can see a three drive pattern formation in USDJPY 0.21% , all the symmetry of the pattern is been respected by the fibo ratios in every wave. We could say that price is ready for the short, we also need to have in consideration that drive 3 could extend to the 1.618 as part of the formation of the pattern, usually trend changes at the 1.272 were prices is at...
Confirmations for Cypher Pattern:
- A to B must touch 0.382 but cannot exceed 0.618 (on this case B is below 0.618)
- B to C must touch 1.272 but cannot close below 1.414 (Trend-Based Fib Extension)
- C to D must touch 0.786 of X to C
- First TP at 0.618 of D to C (Fibonacci)
- Second TP at 0.382 of D to C (Fibonacci)
- Third TP back to where it all started...
We have been following the usdcad structure, same structure that indicates big drop for the USDCAD, we can see several pattern confirmation on the charts that gives a clear idea from where price will start the drop. First we have a three drives pattern that have identify and review on previous idea.
As usual in the three drives pattern, on tops/bottoms advance...
Confirmations for Gartley Pattern
- A-B must touch 0.618 but cannot touch 0.786
- B-C must touch 0.236 but cannot exceed A (on this case its at 0.382 unified gartley )
- D completion at 1.272 (Trend Extension) or 0.786 from normal measurement
- First TP at 0.618 (Fibonacci from D-C)
- Second TP at 0.382 (Fibonacci from D-C)
- Third TP would be back to where...
Looking at a potential 2618 pattern formation for GBPJPY on H4 looking forward to short the pound at the 0.618 of the fibo retracement. This pattern will complete the leg extension for a bigger gartley pattern at weekly timeframe
In this idea we apply technical to USDCAD 0.08% first approach on this pattern been at weekly timeframe and published on the daily so you all can have a better look at it.
We looking forward to sell high at the very top around the 1.272 extension area. Which comes to be the same are for the -0.27 for the fibo retracement
Pattern is forming and respecting...
Looking bath USDJPY -0.15% charts we see price have rejected a weekly support. On H4 price closed outside the channel were price was consolidating. Now we see price closed above and retested the trend line creating a flag pattern formation looking prices to reach the fibo extension levels right on the next major resistence
As we have been seen in the market the dollar is losing value. Since XAUUSD is consider a contrary economy to the dollar we saw a big rally up, which correlate directly with USDJPY, which yen also is consider a contrary economy