At the first peak, BoJ intervention failed to turn away buyers, but it created a good base with a local double bottom pattern (DBP) after the drop from intervention. Our strategy for the DBP here was to buy with a target of 78.6% Fibo of the intervention wave.
In CHF/JPY situation, there was a signal and even a good short-term bounce. But it failed to create new higher highs. The goal of the sending retest buy entry is to continue following the primary trend. So we have to check if the trend is well mature, or if it is still a young one. If it is still young, we follow it. If it is matured, we must be careful and prepared for a bearish harmonic pattern to appear.
In our case, the harmonic pattern showed up, and the price dropped well below the support and headed to the south. If that move continues as I expect, the price may drop down to
ADX is about to cross 30 level, the slop is up so it means the current momentum accelerates. RSI shows that bulls gave up and bears took over.
If the week closes bearish, I believe that the price may drop down to 143.00, 140.00 and 136.00 next if the pressure remains.
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