EurJpy 1H - Trendline Broken, Head and Shoulders, Fib levs

EurJpy 1H chart shows a broken resistance trendline. This trendline is broken and now it is being retested. The sell stop has been placed below the previous low. In case the price hits that level till 23:00 (next 3-4 bars) the sell stop will take effect. The MA has crossed which indicates a bearish movement. The EXCELLENT confluence, which is quite surprising is that the fib extension where the take profit is, is the exact take profit a head and shoulder pattern would have from the top of its head to the neckline. The stop loss would take effect if the .61 resistance retracement is surpassed by a few pips.

Furthermore, this could be the start for a next touch on the resistance trendline (yes it can go down that much, however, I'm not trading that now. It's a short term 1H trade atm)

Take care, trade your trading system! This is just a suggestion!

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Bests

Trade closed: stop reached:

I got stopped out in this trade. However, a stop loss is not necessarily a loss, if you trail your stops. Yes the set up started very well, and trailing the stop ensures you don't give money back to the market! Analysis, entry, trail the stop loss! Repeat!