Bearish 5-O CHFJPY
Ultimately a carbon copy of the USDJPY set up; the strengthening of the yen has produced another bearish 5-o movement. We have a solid support at 112.5 which has now been broken; price action dictates that a retest of resistance at the former support level would produce a bounce- at which we will enter and take profit at the C(4) point.
Just like before, within the OXABCD (0,1,2,3,4,5) the C point is between the 1.619 and 2.24 extensions of the AB wave- the entry point is then 50% of the C wave. The pattern has been illustrated at the 1.618 level but may push closer to the 2.24 level. Should this be the case, the 50% retracement should be adjusted acordingly.
5-O Ratios
B(3):1.13-1.618
C(4):1.618-2.24
D(5):50%
Just like before, within the OXABCD (0,1,2,3,4,5) the C point is between the 1.619 and 2.24 extensions of the AB wave- the entry point is then 50% of the C wave. The pattern has been illustrated at the 1.618 level but may push closer to the 2.24 level. Should this be the case, the 50% retracement should be adjusted acordingly.
5-O Ratios
B(3):1.13-1.618
C(4):1.618-2.24
D(5):50%
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