Top Trade Idea For August 14th, 2014 – EURJPY
By Mircea Vasiu on Aug 14, 2014 01:54:29 GMT
The above chart is the daily char on the eurjpy pair and the whole pattern from the lows until the triangle on the top of the chart is nothing but a so called double combination.
This means that the move to the upside is actually corrective, not impulsive, formed out of two different corrective waves that are connected with an x wave.
The first corrective wave to the upside is a zigzag and the second correction is nothing but a classical contracting triangle that acts as a reversal pattern. However, the most interesting clue comes not from the two corrective waves, but from the x wave.
X wave in the chart above is having the shape of a running variation of a contracting triangle and it has two important characteristics: the thrust of it is minimum 161.8% when compared with the longest wave of the triangle (and it is), and, more importantly, it is signaling a top or a bottom to come. In our case, a top, and this top should be given by the end of the triangle.
As a consequence, I am favoring the downside to at least 120 and the invalidation should be any piercing of the blue trend line.
It remains to be seen if the market is confirming this scenario.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
Market commentary and/or opinions presented do not necessarily represent the opinions of ForexNews. You are advised to conduct your own independent research before making a decision. This website is an information site only. Accordingly, ForexNews makes no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. You should obtain individual financial advice based on your own particular circumstances before making an investment decision on the basis of information on this website.