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.
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.