Thread: FX Times: Daily Technical Update EUR/JPY Butterfly in a Gartley

Daily Technical Update
February 22, 2010
EUR/JPY Butterfly in a Gartley



* 4H: The EUR/JPY has completed a Gartley. The second swing (cd) of the gartley was a bit more complicated than the first (ab). The end of cd was marked with a bearish butterfly, which ended at d’, slightly higher than the d was projected (projection is cd = ab).
* The stochastic shows a bearish divergence. Another wave up to confirm inability to enter overbought zone could be a confirmation for the bearish continuation.
* Daily: The daily chart shows a 100% projection of the previous wave. This would target the 78.6% retracement level at the 119.20 area. This is the short/intermediate term projection for this week.



Fan Yang
Currency Analyst
Commodity Trading Advisor

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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.

Great call on the downward move.

I myself read it a little differently but ended with a similar result.