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USDJPY Measured Move Down and Butterfly Formations

A technical study.. Update: Short trade reached the target.

USDJPY Measured Move Down and Butterfly Formations

I want to approach the matter technically.  I will share my fundamental approach on a detailed USDJPY forecast later.

According to the Bulkowski’s definition  which I completely agree, MMD algorithm finds three consecutive turns, starting with a minor high then a minor low ( start of the corrective phase) then a retrace of at least 70% ending in a minor high( the end of the corrective phase –  According to my backtests “Fib 50% – Fib 61.8% ” is the perfect retracement level – It is assumed  that the next minor low will end the pattern at the bottom of the second leg.

According to the measured rule, as seen on the chart, the target of the pattern 109.100.

The trading tip can be described as “If the price nears the target or support abounds near the target as price approaches, close the trade.”

I will set my target as 109.200. I have two reasons for setting up 109.200 as the target.

  1. Bullish Butterfly Pattern on the Daily Chart – Fibonacci 1.27 extension-
  2. MM 4/8 Main Support/Resistance

So I  will look for a long opportunity somewhere between 109.2** – 109.1** and my first target will be 110.100. I will send entry notification to the members.

An H4 Closing below 110.200 will be the confirmation of the MMD pattern targeting 109.200.

Note: Midterm Fundamentals -Demand for Yen as a safe haven asset – confirms the shorter-term bearish continuation in USDJPY.

Update: Jan 2nd 2019 …Pattern worked as predicted. Anka reached our target at 109.200. We will look for a LOng opportunity based on Butterfly pattern. We will send entry notification to members.

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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money

USDJPY Measured Move Down And Butterfly Formation: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

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