7 Dec 2016
Harami pattern defies EUR/JPY uptrend
A harami cross pattern spotted on the EUR/JPY daily chart indicates a trend change from bullish to neutral.
Prices challenged the 21-period 2-standard deviation upper band by printing outside of its boundaries in the last two days. The bearish pattern also happens in the context of a 14,3,3-parametrized stochastic tracking above 80. This oscillator could easily react with any future close near the lows, specially after yesterday's open and close prices formed a doji line on the chart.
Flagging this sideways price action is the 1-hour ADX which stepped below 30 during today's trading.
Prices challenged the 21-period 2-standard deviation upper band by printing outside of its boundaries in the last two days. The bearish pattern also happens in the context of a 14,3,3-parametrized stochastic tracking above 80. This oscillator could easily react with any future close near the lows, specially after yesterday's open and close prices formed a doji line on the chart.
Flagging this sideways price action is the 1-hour ADX which stepped below 30 during today's trading.