As long as we hold the 135.14 area (38% fib pullback), we should see another round of sharp, unexpected buying. The projection (black line) shows it will take approximately 2 days to reach our final target, which is about 320 pips from our current location.
Everyone has been caught with the Gorgeous Head and Shoulders pattern, until they broke the right shoulder. The large retracement here caught early longs off guard and probably caused them to exit. Plus, EUR/JPY raked in some serious shorts with the burst downward.
There are going to be LONG and SHORT opportunities all the way up. Overall Long Targets are as follows:
forgot to mention... the fuchsia line represents EU on daily. as you can see, it perfectly matches EJ price movements.
isomorph
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here's an interesting looking chart... the daily i was referring to last week... i saw it but honestly could not believe the top of the megaphone would get hit so quickly. i don't remember the EJ behaving like this a few years back. has it always been like this?
and this chart is even more intersting--has EU overlaid: imgur.com/03Jsw6b
as the EU does, so does the EJ!!! i should have watched which one of these ccys started leading the way, then trade the other one accordingly. see what i mean? ;)
EURObull
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Yes, I had the gut feeling that this wave of buyers would take many by surprise. It's also what's getting late longs to the party. Expecting a large dump of 150+ pips from these altitudes.
isomorph
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OK... speechless now... ;)
EURObull
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crazy, huh. To the pip, and within the 2 days too. Thanks Iso