EURJPY - POTENTIAL BEARISH HEAD AND SHOULDER DEVELOPMENT by DanV on TradingView.com
28 July 2015
Having topped around 149 in Dec 2014, EURJPY could be on its way lower to bottom range of potential triangle nearer 100 zone offering longer term bearish trade (see monthly chart).
After initial decline from that top we have usual abc zigzag correction ending at 141. Since when it has again made intermediate swing lower to 133 and retraced intermediate abc zigzag and is in process of turning lower. Additionally, there is potential bearish H&S in development with both the right and left shoulders showing relatively close time symmetry of approx 86 bars on 4hr chart.
If this is correct then we could have potential shorter term targets:
1. 133, a retest of the neckline.
2. 131 -130 where AB=CD price symmetry and closer to 61.8% fib retracement of the pervious rise.
3. 128 - 127 which is full retracement and 61.8% extension of wave 1 or A.
Invalidation would be above 138.
Trigger could be on break of the minor rising support trend line which could be timed using say Hourly chart.
Longer term as noted above this could turn into a very bearish and profitable trade.
Warning: This is my interpretation of price action using TA approach that I consider helps me most but could be completely wrong. Therefore as always, do your own analysis for your trade requirement and ignore my views.
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DanV
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