Bearish on EURJPY for the following reasons:
Weekly Chart
Daily Chart
How to trade this setup
Since the candle had closed above the neckline of H&S pattern, we can initiate short position once the market has crossed the long wick as indicated on the above daily chart.
Entry - 122.53
Stop Loss - 126.50
We have multiple targets on different timescale as indicated below. Wave 5 should be an extreme.
Weekly Chart
- Wave 2 ended at .38 fib level
- On the weekly chart. 1.6 fib level corresponds with wave 3
- Market had gone to test 125.98 area which was wave 1 but did not cross into wave territory.
Daily Chart
- ABC correction patter in formation.
- Head and Holders formation completed thus we can short below the neckline.
How to trade this setup
Since the candle had closed above the neckline of H&S pattern, we can initiate short position once the market has crossed the long wick as indicated on the above daily chart.
Entry - 122.53
Stop Loss - 126.50
We have multiple targets on different timescale as indicated below. Wave 5 should be an extreme.
