That long term down trend on the yen across majors/crosses has broken and price for a while was on the up. We have since saw price enter into a consolidation phase with unconvincing candles on the daily chart. on the 8th of February, price burst with a bullish impulse wave- the following correction waves made a solid and successful Gartley movement (which I previously posted; see link below). Now with price still retracing from that impulse, we see a butterfly formation. The D point sits bang on the resistance/support pivot point from which the impulse wave originally bounced. This makes for a great long entry point! Stop loss at 50 pips of the D level of 85.413; the first and second take profit levels will land at the 0.382% and 0.618% retracement levels (respectively) to points A:D. One can either wait for the whole .618%, or take profit at .382% then re enter with half of their position!
Butterfly Ratios:
AB: 0.786
BC: 0.382-0.886
CD: 1.618-2.24
XD: 1.272
Butterfly Ratios:
AB: 0.786
BC: 0.382-0.886
CD: 1.618-2.24
XD: 1.272
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Price has found support at our initial X point and retraced. This would normally be fine as long as price essentially continues to our D point. However, as price has closed above our C point, this renders the pattern invalid.
