EURJPY, H&S forming???

Updated

After breaking the downtrend line at the start of the month at the 38.2% retracement, eurjpy had steady upswings and found resistance at 132. Potential forming of the H&S can now bee seen, if the current swing will not go back up to test the 132 level and breaks lower. Earlier entry was at the ‘head’ as the trend line was broken and perfectly retested. If you did not get into the trade then, smaller timeframes could provide earlier entries on 15 minute timeframes.
Alternatively, if the eurjpy retests 132 and break higher impulsively, we could retest the 61.8% of the sell-off or form other patterns like double top.
With JPY and Gold selling for the past few weeks and USD gains, safe havens seem to be falling on the strength of the US economy and even Europe shows steady figures. With gradual rate hikes in US and EU no longer unanimous in rate hikes, fundamentals still show bullish momentum for eurjpy.

Happy Trading!

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For now we do seem to have a right shoulder forming and price starting to approach the neckline. Currency strength shows it is mostly due to rally in JPY, while EUR is yet to show significant moves today.

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MPO reached, lock in some profit and let it run

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4 hour candlesticks show still downward momentum but requires a push lower

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Draghi's speech yesterday added to the momentum, now major trend line broken and 38.2% confirmed. Possible to add further to the position once the break happens.

Antonio_trader

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