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USDJPY Inverse Head and Shoulders Pattern

USDJPY Inverse Head and Shoulders Pattern

Pattern /Reason: Inverse Head And Shoulders Pattern

Description: Pair broke the neckline of the I SHS pattern. It is likely to retest the broken structure 108.200- 108.300. We plan to use this pullback as a buying opportunity

Time Frame: H4

Accuracy of the Pattern: 72 %

Setup No: USJP070701

Recommended Lot: 0.20

Trade Period:  Intraday / Medium Term

Active/Pending: Pending

Trade: Long

Entry: 108.300-108.200

Stop Loss:  Below 108.000( Structural Stop 107.500)

TP1: 108.750 / reached

TP2: 108.950

TP 3:109.230 ( We have an emerging Bearish Butterfly Pattern at this level. I will update later. )

Divergence/ Convergence Confirmation: Nothing Particular

Candle Pattern Confirmation:

Moving Average Confirmation: Price is above SMA100 (108.000) and EMA50 (108.020)

The trend of the Timeframe: Bullish

The trend in the Daily Chart: Bearish

Notes:

  • If the trade it makes closing above 108.600, you may add long positions. ( Added )

Update: TP1 Reached

 


Warning and Things to Pay Attention:

  1. Harmonic Patterns are reversal patterns and mostly against the main trend on the chart they appear.
  2. Target levels are determined by MM Calculation as the pattern has not been completed yet. They may vary 3-5 pips according to the completion level of the predicted patterns.
  3. Pay attention to Time Frame, Trade Period and Estimated Completion Time, Accuracy and Recommended Lot Size clauses mentioned below.
  4. Do not risk more than 2% in one trade setup.
  5. We usually book partial profit at the first target and move our stop loss to entry or break-even level. Use your own risk/profit management to exit the trade.
  6. We are publishing potential opportunities. There are no certainties and traders bets on possibilities. Read the setup carefully before entering a trade and take your own decision.

 

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Ercu Kartas

Treasury Department Dealer Technical Analyst FX Trader

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