Friday, October 26, 2012

EURJPY Head And Shoulder Complete EURJPY Short Trade
I am watching this formation from past few sessions. Details [here].

Now this head-and-shoulder formation is complete and price has broker below the neckline. Moreover price has also bounced to the neckline after breaking it and is pushing down. EURJPY Short Trade
Today being Friday, I wont take this trade. I will wait for Monday Europe open to see how strong this pattern comes up. This setup will be on my watch list till then.

If this setup comes comes up well on Monday, then I will take short trade at 103.10 for a possible move towards the channel's lower timeframe. 

On daily timeframe, price is moving inside a rising channel. Price recently got rejected from the channel's upper trendline. 

--------------------------------------------------------------------------------------------------------------------- EURJPY Short Trade
UPDATE ON 29-Oct 3:35GMT: The neckline of head-and-shoulder pattern is holding very well. If YEN continued to strengthen like it did on Friday, then a move towards channel' lower trendline can be expected. 

I will wait for Europe open and will trade this based on how YEN reacts. I plan to go short at 103.1005 if the pair remain stagnant or shows any sign of coming down.

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