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Necklinetrader

USDJPY waits necline breakout of inverted H&SUSDJPY has formed a classic inverted head and shoulder pattern on a daily basis. The prices are trading very close to the neckline and we might see a breakout soon. furthermore, the weekly chart has formed a bullish engulfing pattern as well that supports the bullish argument. Like always, the price can take two paths, the first one is highlighted by the blue arrows - neckline breach (sustains on a daily basis) to reach the first target of 110.472. If the prices sustain above this level, it will go for the next 112.00 hurdle. If this happens, we will have 107.00 as the stop loss. The second path is shown by orange arrows with prices first testing the tip of the second shoulder and then taking a breakout from the neckline. Either way, prices are headed for the 112.00 and in both cases, we will enter only when the neckline is breached and sustained.
Long
by forexnoobmaster007
1
Short GBPUSD to test 1.21151 level of the broadening channelGBPUSD is a good sell right now as there are a number of patterns that point towards the southward trajectory of the pair. The pair initially went above the broadening channel, but later on reverted back with a head and shoulder pattern (blue shaded area) which make bears on the winning side, with the target of testing the lower trend line of the channel at 1.21151. In other words, follow the red arrow. Meanwhile, the pair is taking support from the 1.22859, which might become the neckline for the second head and shoulder pattern (highlighted by green area). The second shoulder of the pattern has not formed yet, which can make the prices turn to 1.24043 resistance level. In other words, the pair can follow the path highlighted by blue arrows. 10 to 20 pips above this resistance can be the stop loss for this entire trade. Furthermore, on the weekly chart, the pair has formed an evening star pattern that again supports the bearish argument.
Short
by forexnoobmaster007
Inverted H&S, second shoulder still under creationThe price movement of the pair is forming an inverted head and shoulder pattern with the second shoulder in the midst of formation. We can enter a buy position from the current level with stop loss at the crest of the shoulder at 107.868 till the first target at 109.493 which is also the neckline. After the prices breach the neckline, TP 2 and Tp 3 will activate. As you can see the movement of the price can take two approaches. The first one is the price consistently moves above to Tp3 like the blue arrows show. Or the price can take the second route, where the price witness pullback after Tp2 is hit before it targets Tp3 as shown by the orange arrow.
Long
by forexnoobmaster007