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EUR/JPY Inside Bar Pin Bar Combo

Published 01/16/2013, 03:22 AM
Updated 05/14/2017, 06:45 AM
EUR/JPY
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EUR/JPY

Forming a host of price action setups lately, the EUR/JPY formed a LH and bearish engulfing bar combo on Tuesday, which suggests short-term topping. I suspected this based on the extreme price action as of late in my weekly market commentary.

Just recently, the pair broke and closed below the 20ema for the first time in 6 days. In the process, it formed an inside bar + inverted pin bar combo. Keep in mind, in a down leg, an inverted pin bar is really just a failed attempt to rally. Since then, the pair formed a pin bar of an intraday support level at 117.57, but later attacked those lows. If this level breaks, expect more profit taking from bulls, which would suggest a possible unwinding to 116.00.
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