EURJPY - Looking to sell into the AB=CD correction

Ian Coleman FXStreet

Technical

Monthly: Posted a bearish Outside Month in March. This pattern often highlights the top of a trend and the start of a new downward bias. The Marabuzo level (mid-point from open and close) is located at 132.76. Price action in April has seen sellers emerge above this level.

Weekly: A 261.8% extension level from the current trend (137.55-128.99) is located at 115.14. This is close to the April 2017 low trade at 114.85. A long-term target area. Bespoke support is located at 124.60, just above the 161.8% extension level.

Daily: The 50% Fibonacci level is located at 133.22(from 137.48-128.95). We have also seen a rejection of the Ichimoku Cloud top. Levels below 129.60 continue to attract buyers.

Intraday (four-hours) – An AB=CD corrective formation would look to target 131.67. Bespoke resistance is located at 131.60. The 61.8% pullback level from the 133.48-129.24 move is located at 131.86. This is the zone we look to get short once more.

We look to Sell at131.60

Stop: 132.60

Targets: 124.60

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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