Yen has been offered across the board after Japanese PM Abe said more stimulus is coming. The stimulus talk was enough to push the oversold Yen pairs higher. EUR/JPY witnessed a sharp recovery from the low of 111.068 to 113.50 levels.
The recovery when viewed against the backdrop of a fresh Japanese stimulus tells me the pair could move to Point D located at 120.54 and complete a bearish bat pattern over the next two months or so.
Point D is the reversal point, which means one may expect fresh offers to hit the pair after it nears 120.54 levels.
The pattern would become invalid if prices see a intraday break below point C = 110.824
The recovery when viewed against the backdrop of a fresh Japanese stimulus tells me the pair could move to Point D located at 120.54 and complete a bearish bat pattern over the next two months or so.
Point D is the reversal point, which means one may expect fresh offers to hit the pair after it nears 120.54 levels.
The pattern would become invalid if prices see a intraday break below point C = 110.824
