EURJPY drawing harmonic pattern
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.
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.