Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
EUR/JPY: do you see the pattern?
Information is not investment advice
EUR/JPY seems so be forming a bearish harmonic pattern – something between Crab and Butterfly. There’s still scope for upside towards the 118.70/119.85 area, where a reversal to the downside should take place. Notice, however, that it often happens that the harmonic patterns don’t reach the exact targets. On the H4, the pair’s consolidating within a kind of triangle. The break will lead it either to 117.00 or to the levels mentioned above.
Trade ideas for EUR/JPY
BUY 118.25; TP1 118.70; TP2 119.25; SL 118.10
SELL 117.40; TP 117.00; SL 117.55
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
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Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday.