is eurjpy forming a messy H&S?on the 8 hrs we can see eurjpy establishing a downward channel which, i have reasons to believe is forming, because of Europe's instability & inability to control inflation
i.e. on a broader look on the 2 day we can see eurjpy finish forming the head
key points:
. with the breakout of the jpys we see extreme volatility
. market tends to react strong to opec and largard meetings
. ecb aggressive rate hike to combat inflation spark concerns to whether they downplayed it
. due to its extreme volatile nature trading it on the 8 hrs would reap most profits
take away:
. after the breakout we see eurjpy reaching a high of 144 however failing to break it 3 times which establish a roof/head
. it later found support @139 to retest the high of 144 which it failed to break
> a 139 was created when Ecb hints at a rate hike
. after rejection @ 144 we see it found support @137 to go as far as 142
> 142 rejection was created when Ecb implement a very aggressive rate hike of 50 points which sparks the question, will this aggressive hike spark a recession?
. with that information we can draw our channel line to see that price is down trending with resistance of (144, 142, ???140-138) and support of (139, 137, 135)
> i.e. an interesting look at this chart is that price breach 135 but did it form the head and is this final trend bounce the right shoulder?
outlook:
. if price holds 135/136 we can buy and hold to 138/140 where the counter trend line is
. if price can't maintain 135, we sell right to back 133 which will be current support previous resistance.
> then wait for confirmation to buy up to 138-140 after, we wait to see rejection to sell back to the 133 support
. if price holds 135 we buy up to 138-140 then wait for rejection to short back to 133
. after price does this we wait for more information to see whether price will hold 133
