Is A Rally Realizable? Market Gemetries Offer An Insight | $JPY

Friends,


The USDJPY posted a series of triangular geometries whose Fibonacci relationship remains significant (see DAILY chart).

Just as importantly, a finaer granular analysis of internal geometries would also suggest that added upside remains probable as of this market close (10 OCT 2014):

Following is a cut/paste discussion held from a recent USDJPY posting, where I highlight internal market geometries, most of them expressed in terms of Mr. Bill Wolfe's Wolfe Waves pattern - Here is the content:

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Source:
(...) Looks like we are dealing with a COR (M15/M60) within a COR (M240/DAILY) within a COR (WEEKLY), wherein a series of internal triangles/WW are boxed within one another. Here are the three timeframes in which these geometries have occurred:

1 - WEEKLY VIEW:
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A Wolfe Wave hit 109.xx target and came to a 5-prime position. Yet, price is now resting on pattern's 1-3-5 Line, which may suggest a potential support. Less likely to occur here would be a rare 5-second (5") event:



2 - DAILY VIEW (same as weekly pattern):
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Note here that a large WW already met its 5-prime requirement for a reversal. This chart alone speak against any significant rallying potential, although the current price at market closure rested on a significant 1-3-5 Line support:



3 - 4-HOUR VIEW:
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Here, there is a definite geometric conflict worth pondering:
a -- Price rests at 1-3-5 Line of a larger WW (seen above in DAILY and WEEKLY views)
b -- An internal WW (BLUE) reached its own 5-prime, indicating a probable rallying event
c -- A larger WW (PINK) also reached its own 5-prime position, reinforcing a similar rallying heralding:



4 - 60-MIN. VIEW:
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In this chart, we are looking at the internal WW (BLUE) illustrated in the 4-Hour chart above. Here, the technical detail go a bit further, as we are seeing a RSI sitting on its own supporting trendline, within its own triangle.


OVERALL:

While price has been pushed to a significant bearish level, both the geometries and technical indicators are calling for a pullback. While this remains only a probability event, it its quite interesting to see how a lot of this internal-within-internal geometries are supporting a net reactive rally probability. Sunday's open might possibly offer a directional flavor for the remainder of the week.

Cheers,

David Alcindor
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OVERALL:

As you may recall, this chart (tradingview.com/v/oyoJ6O5y/) was looking at a potential upside, which has since been reached. Therefore, we are currently at a significant cross-road where bulls and bears are battling with crosses, arrows and and triangle shields in hands.

For the conflicting technical reasons above, I have chosen to turn TradingView's market direction tag to "Neutral"

Cheers,

David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA


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