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EURJPY drawing harmonic pattern

EURJPY drawing harmonic pattern

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After putting in a reversal candlestick pattern on April 04, the EURJPY has achieved a corrective rally that could be a part of a fine Fibonacci symmetry.

eurjpy-18-05-fxcomment

We have some technical factors over daily studies that may signal potential pullback over upcoming sessions as follows:

  • The pair is presently re-experiencing a classical resistance.
  • Current trading levels meet the 200% Fibonacci projection of the AB leg for potential harmonic 5-0 pattern.
  • Coverage from SMA200.
  • Overbought sign on RSI14.
  • Recovery exhaustion on MACD.

Of note, the pattern is bullish and the completion point is at 50% Fibonacci of the CD leg, but 38.2% Fibonacci of this leg represents a good target for sellers.

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Amir El-Araby Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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