Euro / Japanese YenShort
EUR/JPY head and shoulders formed
Pink line is a huge area of monthly resistance if you look to go to the monthly chart this is self explanatory.
tested 4 times with a false break out on one (the head), remember this is an area of support own the monthly so i tend to take into consideration 20-30pips area to play with for safety.
Head and shoulder formation formed as shown with the three boxes.
EMA 5 and 20 looking to cross so will enter only upon this cross along with a break of the 38 fib.
Fib pullback to 61.8 fib with confluence of price action engulfing candle for reverse pattern.
Stop loss positioned at 78 fib with a first target of 121.679 (previous turning point) second target 120.990 (second turn point support and -27 fib extension.
Final target of 120.136 (full -61.8 fib exntaesion and previous support turning point)
Looking at a 1:3 risk reward here for full extension and will look to move stop loss to break even upon second target execution
tested 4 times with a false break out on one (the head), remember this is an area of support own the monthly so i tend to take into consideration 20-30pips area to play with for safety.
Head and shoulder formation formed as shown with the three boxes.
EMA 5 and 20 looking to cross so will enter only upon this cross along with a break of the 38 fib.
Fib pullback to 61.8 fib with confluence of price action engulfing candle for reverse pattern.
Stop loss positioned at 78 fib with a first target of 121.679 (previous turning point) second target 120.990 (second turn point support and -27 fib extension.
Final target of 120.136 (full -61.8 fib exntaesion and previous support turning point)
Looking at a 1:3 risk reward here for full extension and will look to move stop loss to break even upon second target execution
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