Wow this is huge, we have USD/JPY on a 4h chart with a picture perfect bearish bat pattern. We've got a lot of analysis to cover in this post so please read it all!
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
We have recently broken out of a trading range which is shown in the chart below, I'll be expecting price to correct itself before continuing the move... In addition we are also seriously overbought on all relevant time frames for RSI.
I'll be expecting price to stall out around our D point, completing our pattern then a sharp move to the downside. This harmonic pattern looks extremely powerful when you take into consideration all of the analysis above.
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
We have recently broken out of a trading range which is shown in the chart below, I'll be expecting price to correct itself before continuing the move... In addition we are also seriously overbought on all relevant time frames for RSI.
I'll be expecting price to stall out around our D point, completing our pattern then a sharp move to the downside. This harmonic pattern looks extremely powerful when you take into consideration all of the analysis above.
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