EUR/JPY - Potential ABCD to the upside (Daily TF)

2020년 5월 29일

Here we see buyers exhausted at trying to break above the Major Round Number 120.000, which suggests that sellers are now coming in to play. This pair is also making a series of higher highs and higher lows which also suggest price to be moving in an uptrend. I think we would see price selloff and tap the 50% fib level which is also a previous resistance level that has yet to be tested. From there, we will have completed the (C) leg of the ABCD pattern at the 50% fib level and would look to buy based on rejection candlesticks or bullish patterns forming there. SL levels are subjective but we would look to TP at a few targets, such as the -27% & -61.8% fib extensions levels. For now we would look to short the market and then buy for the longer term outlook on this pair.