(Possible) Bearish Butterfly, EURJPY 1H

16 jul 2017

This is far from completion, but we have the 2 clues needed to watch out for a possible butterfly formation. We had price hit an 88.6% of XA but not close above; also had the secondary retracement do the same (88.6 touch but not close above). This leads us to a possible extension (leg CD) going up to a 161.8 to a 261.8, with confluence numbers coming in at 1.26 to 1.618 of XA). We have a zone of confluence as seen, so we will be looking for shorting entries in that zone. Stops placed a couple of ticks above the high. Targets at 38.2% of extension and 61.8%.