From my last post on EURJPY, price just went through the support zone. Now the pair is hinting more downside. Giving me a bearish bias for now.
Pattern Identification I see a Bullish Bat pattern completing at 113.90. This could potentially go down further to complete the Harmonic Pattern, before the bulls will be interested to buy.
2 days ago, the RSI was already in the oversold zone. Now it is even more oversold with a reading of 17.76 (based on this chart here).
Lesson learn : An oversold financial instrument can remain oversold for a long period of time. And the vice versa holds true too.
Trade Execution I would love to see the pair retrace back up to the SAR zone to give us the opportunity to short all the way down to the completion of the bullish Bat