Beautiful H&S pattern

FX:EURJPY   Euro / Japanese Yen
38 3 1
Hello traders!
I am coming back with an excellent SHORT setup on this pair. Its a very reliable Head and shoulder pattern.
As described in the chart, we could go short on the pair at current levels and take profit at around 131.00 That gives us about 400 pips of profit. The failure for this pattern is just above the high of the left shoulder and thats at 135.26. So I will be placing my stop loss @ 135.55.
I will follow up with this post as and when I see some developments.
Hope you all have a great trade with this idea.
Happy trading and happy pipping!
Hi, it is quite unusual to trade the H&S pattern at the formation of what MIGHT be a right shoulder, do you have any technical/fundamental evidence that the price will drop here to the shoulder line? I could not call it until the head and shoulder pattern was complete, Could you explain you thinking further?
Prabhu.Ram SteveTobin
Certainly. From the technical standpoint, though I am not able to show it here, the pair has completed a major target of bullish wedge pattern on the daily time frame when it hit 135.97 a few days ago and often, when a wedge pattern is completed, a possible reversal begins with a H&S pattern. And another stand point is, EUR has failed to capitalise on the strength it showed 2 weeks ago. There are signs of EUR losing ground against other majors in short term. EUR strength was primarily based on USD weakness for the last couple of weeks and with a strong NFP last week and no major data from the euro zone, i see the Currency struggling over the next days.
SteveTobin Prabhu.Ram
Thanks for the further explanation. I agree with your fundamental view giving potential euro weakness and a possible risk averse move in equities that could flow into FX. At present however a FX appears to be having a risk on movement with AUD,GBP and CAD all showing strength this is likely to,drag the Euro higher. I do not see the technical set up you speak of and would probably stand aside and wait for a clearer entry point.
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