EURJPY affirming harmonic structure

Yesterday, we have discussed the probability of “drawing a harmonic 5-0 pattern” over daily studies of EURJPY.

Traders has ended yesterday’s trading with a bearish engulfing candlestick pattern following the re-test of the classical resistance zones.

eurjpy-19-05-2015-fxcomment

The negative divergence on RSI14 assisted traders to sell the EURJPY.

This harmonic pattern is in its final step of completion; scientifically, the pair may move towards 50% Fibonacci retracement of the CD leg.

Nevertheless, we prefer to book profit gradually as mentioned yesterday and thus, we will re-sell the pair aiming to reach 132.80 zones where 38.2% level exists.

Negative crossover on MACD traditional may affirm resuming the downside pressures.

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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