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Weekly Price Action & Ichimoku Chart Highlights | Sept. 30th - Oct. 5th

After peaking at 103.50 about a week and a half ago, the EURJPY has formed two N waves down which is leg 6 of the wave count. This is hinting there is likely another leg down and the price action confirms that with the last pullback being corrective. Also, the chikou is below the price line, and there is a thick kumo ahead, so watch for a potential strong downward tenken-sen kijun-sen cross early this week to catch the next potential leg down.

ichimoku tenken-sen kijun-sen cross N wave sept 30th

After rejecting just shy of the $1790 level last week, Gold started to sell off and show some potential weakness and definitely some profit-taking. However, the precious metal was bought back up on the dip which formed a pin bar rejection off the 20ema and followed it up with an impressive $24 gain to end the week. I suspect the pullback into the daily 20ema wasn't just profit-taking from all those that were long around the breakout at $1633, but also a punish the johnny-come-late players who entered this uptrend towards the highs around $1775.

With the dip being bought so aggressively, it shows the institutional players are happy to buy this on the dip so the trend is still well supported with no structural breakdown. Watch for price action pullbacks into the $1737-42 area for potential longs while bears can look to short on corrective weakness heading into $1787.

pin bar rejection forex price action sept 30th

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