EURJPY - Bearish Crab Pattern Indicates Potential ReversalEURJPY is currently showing signs of a Bearish Crab Harmonic Pattern (XABCD) on the 4-hour chart, indicating a potential reversal in trend. Additionally, the price is approaching a significant trendline, further supporting the bearish bias.
Bearish Crab Harmonic Pattern (XABCD):
The formation of a Bearish Crab Harmonic Pattern suggests that the price is likely to reverse downwards from Point D. This pattern typically indicates a high probability of a trend reversal.
4-Hour Trendline:
The price is currently at a 4-hour trendline, adding confluence to the potential bearish scenario. A breach below this trendline could signal further downside momentum.
Entry, Stop Loss, and Take Profit Levels:
Entry: 165.900
Stop Loss: 167.060
Take Profit Levels:
TP-1: 164.720
TP-2: 163.600
TP-3: 162.450
Risk Management:
It's essential to adhere to proper risk management practices when executing this trade. Position sizing should be adjusted to ensure that potential losses are within acceptable limits relative to account size and risk tolerance.
Conclusion:
In conclusion, the technical analysis suggests a bearish outlook for EURJPY, with the formation of a Bearish Crab Harmonic Pattern and the price approaching a 4-hour trendline. Traders may consider selling at 165.900 with a stop loss at 167.060 and targeting take profit levels at 164.720, 163.600, and 162.450.
