Forex VPS
Forex VPS
ForexFunction Logo

"Forex trading involves a high level of risk"

Forex VPS
 Market Comments |  Technical Indicator Signals |  Cross Pair Rates |  Live Spread |  Live Charts |  Daily Pivot Points

Does EUR/JPY inverted head and shoulder have more potential? : FxWirePro | September 24, 2018

Print PDF

As per our previous post on technical analysis of  EURJPY -0.20% , the pair has shown considerable price rallies upon below mentioned price behavioral patterns.

Technical chart and candlestick patterns formed – Gravestone doji and shooting star patterns have occurred at 131.052 and 132.234 levels respectively which are bearish in nature (refer daily chart ).

On the contrary, the stern resembling bullish engulfing patterns with big real body have occurred at 130.855 and 132.478 levels that helps in completing inverted head and shoulder chart pattern which is bullish in nature. The pair forms inverted head and shoulder pattern with head at 124.903, shoulder 1 at 127.868 and shoulder 2 at 126.643 levels.

Consequently, you can make out sharp current rallies that spike above 7DMAs on this bullish pattern , for now, more rallies on card as both leading and lagging indicators signal intensified momentum and bullish trend continuation.

To substantiate this bullish stance, today, bulls have continued their business despite last weekend’s formation of shooting star at 132.234 levels.

While on intermediate trend, consecutively shooting star , hanging man and spinning top patterns pop up at around 61.8% Fibonacci levels from the lows of June 2016. On the contrary, hammer patterns have occurred at 128.830 levels sensing support at 124.742 (i.e. 38.2% Fibonacci levels) to counter the bearish sentiments (refer monthly chart). Bulls, on this timeframe, resume after retracing 38.2% Fibonacci levels.

While both leading and lagging indicators signal strength and momentum in momentary upswings and weakness remains intact on the monthly terms.

Trade tips: On trading perspective, at spot reference: 132.208 levels, it is advisable to buy one touch call option, use strikes at 132.478 levels, the strategy is likely to fetch leveraged yields as long as the underlying spot FX keeps spiking further until expiration.

Alternatively, ahead of ECB’s Draghi’s speech today, we advocate shorts in futures contracts of mid-month tenors with a view to arresting potential dips.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 77 levels (which is bullish ), while hourly JPY spot index was at -35 (mildly bearish ) while articulating at 05:25 GMT             .

The above indices are also conducive for our above trading strategy.

Submit Your Comments:

 Forex Trading VPS


Windows 2008/2012 | Server Location Amsterdam, France, Canada | Low Latency From Brokers| Super Fast Trading Experience | All types of EA supported | 3 Days Money Back Guarantee

Plan NameBuy Link CPU RAM Disk BandWidth Price (Montly)Price (Quarterly)Price (Semi-Annually )Price (Annually) InstallationBackUpSetup Fee
Economy buy now2 Core 756MB 15GB 1TB $6.50/M$6.20/M$5.90/M $5.50/M MT4 Pre-InstalledYesFree
Standard buy now 2 Core 1GB 25GB 1.5TB $8.50/M$8.20/M$7.90/M $7.50/M MT4 Pre-InstalledYesFree
Premiumbuy now 2 Core 2GB 40GB 2TB $16/M$15.50/M$15/M$14.50/M MT4 Pre-InstalledYesFree
Advanced buy now4 Core 3GB 60GB 2.5TB $26/M$25/M$24/M $22/M MT4 Pre-InstalledYesFree
Professionalbuy now 4 Core 4GB 80GB 3TB $33/M $32/M$31/M$29/MMT4 Pre-InstalledYesFree
Business buy now 4 Core 6GB 100GB 4TB$46/M $45/M$44/M$42/MMT4 Pre-InstalledYesFree
Platinum buy now 4 Core 8GB 120GB 6TB $59/M $58/M$57/M$55/M MT4 Pre-InstalledYesFree
Diamond buy now 4 Core 12GB 180GB 8TB $89/M $87/M$85/M$81/MMT4 Pre-InstalledYesFree

***We accept Neteller, Skrill, MasterCard, Paypal, Payza, Perfect Money, Webmoney !