EURJPY BULLISH FLAG !!UPDATE 23rd DEC
In London right now and just had my porridge and what do you know I spot a bullish flag. These are very common when using ABCD Fibonacci extensions.
This technical analysis concurs with my previous eurjpy analysis tagged below and shows a higher target than I previously anticipated. This geometrical formation has given me more confidence in hitting my TP2.
The flag pole begins at the low of 16th Oct (134.13) which is also the beginning of my ABCD Fibonacci extension. It then extends to 2014 yearly high (149.60). The flag itself is outlined by the 2 thin black trend lines. If you scope into the 240min chart you can clearly see a breakout. However there is still a possibility this pair may head lower to the blue 38.2% retracement of A-B (143.23). If this does occur then a bullish flag pattern can still be valid.
I have displayed the distance of the flag pole from the low of the flag itself (146.70) which is also the C reference to the ABCD Fibonacci extension. As you can see the price distance hits the 100% ABCD Fibonacci extension to the T. This is also a very strong SUPPLY ZONE that I mapped out already from previous analysis. Coincidence or just plain wizardly? Technical analysis tells a story and sometimes if your smart you can skip a few chapters!
If I am correct then we are looking at a 1300pip move to the upside. Thats a very big move!
Happy Holidays :)
Rodrigo
