Charts I’m Watching: Mar 3, 2014

USDJPY has retraced .786 of its bounce off 100.76, completing a Gartley Pattern.  A decent bounce will will set up the yellow channel midline tag we’ve been discussing at the purple 1.272 for a Butterfly Pattern completion at 100.18.

Although, remember that Butterflies can extend to the 1.618 as well (99.46) which would mesh nicely with the white .500 at 99.60 (if I’m not mistaken, this could work as the 5th of the 1st wave down.)  And, if the .786 bounce isn’t all that substantial, the target remains the same: the .618 bounce sets up a Crab Pattern at the 1.618 just fine.

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