LOOKING AT AUDJPY: BEARISH FIBONACCI EXTENSION PATTERN
Drawing a Fibonacci tool from the swing high at about price level 85.10 to the swing low whose price level is between 83.00 and 82.65, and another from the same swing high to a swing low of price level 83.35 gives extensions whose 161.8% Fibonacci levels are close enough (proximity is very important) to be considered a cluster.
To set a tight Stop, one needs to be precise as to where exactly the bounce is most likely to happen; which is why I took the liberty to consult some of the recent swing highs. And as it appears, it was quite helpful since price seems to be heading towards the confluence which I very much regard as a selling point. This pattern is somewhat a reflection of the harmonic "ABCD" only that the supposed "AB" leg isn't equal to "CD". Whichever way, it is a bearish pattern all right and I perceive the Bears are growling.
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