USDJPY--Tuesday Afternoon, February 24, 2009
SInce last week I have been following this pattern evolving on USDJPY:
To be perfectly frank I thought it was over when the 2.618 delta area was hit last Thursday and my initial trade was a short. But then when it reversed and broke above that level, I began to project the 4.236 level as the next extended target.
But then I saw another pattern--taking the high that occurred near the 1.618 top as an alpha and the subsequent low as a beta, you get this:
Yikes. Which is the valid pattern? Both, probably. They are interwoven--and in a sense, one springs out of the other. But eventually one will eat the other.
Here are some 4 hour charts where the degree to which the price action was entrained to the fibonacci levels becomes even more apparent.
