Perfect Head & Shoulder In GBPJPY_crash_again??

There is a perfect head & shoulders in GBPJPY weekly chart as shown in figure.

The last two times this year in daily chart we had a similer pattern and the market fell 2000 PIPS in Jan-Feb and late July-August period.

And this time we are seeing the same pattern in "weekly" chart.

I had posted earlier about the pattern in main GBPJPY thread and since then, the right shoulder is half way and 500 PIPS down.

Is next week going to be another big crash...Dow is showing all signs of it today already..

Will coming week be one of our most important days in our life's..

There are numerous signs of it...I just got hold of one...

Do you guys see more signs like this....

Good Luck

Yes, I noticed this too earlier. I am not sure if it will crash next week or not, I sure hope it does. It would provide some great trading opportunities. I have thought the dow has been overpriced for a while now.. It needs to correct

Maybe I'm naive, but what does this pair have to do with where the Dow is at?

i guess it just a correction a-b-c for major trend

ps. i've short this pair from 61.8 daily chart

GU was "forming" one H&S and didn't continued, at least until now.

I'm not sure where this GY will head, but i know one thing...

H&S are not meant to be used as a "look like".

H&S are meant to be used after completation, because they have an implied reason to be trusted only after. In other words... after the neck is broken with preference after the neck line is retested from below, despite not tottaly necessary.

The psicology behind, is that an H&S completed not only means a lower high after the big top, but a break of the neck gives the down move an extension status (important trending concept), which is different from retracement.

Lets see the next weeks.

Cash flow/carry trade/risk appetite correlation. Read all posts by NewstraderFX. He explains how all of this works.

Precise head and shoulder formation; imminent drop.

No, it's not yet a true H&S formation (by any definition I've seen)- and will not be until the price breaks the neckline. It looks very much like it's forming one, and it's probably profitable to play it like the right shoulder is going to complete the movement - but in the meantime I would treat it as just a developing counter-trend - with the resistance line from the Oct 15th high, and the next target at the last support point on the rising trend, at around 230, whicle keeping an eye on the other JPY pairs (particularly USD/JPY).

And remember, regardless of what happens... it is a weekly chart.... it will not all play out on Monday morning... it will takes weeks !!!

and the price at the level is ?

Dow fell over 300 points on Friday and Nikkie could follow on Monday..

H&S is pretty accurate in the longer time frame..as it takes days and months to make one and even if the right shoulder is not complete and the points have not fell below the neckline to confirm..YET..its is 50% down with forming the right neckline in weekly chart...thats H&S shoulder is almost 90% complete and it took weeks to make one..

Be careful though when the market fall, the media will try hard to put some answers to why the market fell..last time it was credit crunch, before that carry trade unwinding..this time..god knows what they will come up....rising oil prices, turkey-kurds war, iran nuclear stand off etc etc...they just have to find answers for what is happening...the danger is you will miss the rest of the crash and think about when will it reverse..

Time to play...market is already down 40 PIPS and the Tokyo session has not even opened..yeah yeah im over exited..but i being waiting for this day for a month

Wow the market tanked 100 PIPS already and the Japanese market has not opened yet..hehehe...guys this is it

could be a very interesting day for the yen

I saw this coming only the last minutes and took a short last friday night though the signals have not lined up completely at that time...good thing I did...

Anything to go by in finding the bottom of this ?

WOWWWWWWWWWWWWWWWWWWWWWWWWWW......

200 PIPS down already.... and the party has not started yet...still 10 minutes to go for Nikkie to Open..


Guys..THIS IS IT>>>>>>>>>>

Market would have to drop around 210 mark or less in GBPJPY to get it going up....everything is co-related....you would see the same thing for UJ,EJ, Nikkie, Dow et all

Dammmmmmmm..Oanda..Does anyone facing logging problems with Oanda..Im unable to log in....

yes. oanda down... again like in august....
also the plaftorm issues forum of oanda doesn't work well...

Looking at the weekly, one could put on quite a great short right now. The stop level would be at 242.00, just above the previous shoulders. The yen could run a very long way down if deleveraging forces the carry traders to begin unwinding. Awesome upside, well-defined downside. That's just a cherry of a H&S pattern IMO.

Damm...I was not able to add position in Oanda...its freezing....now its working fine...

this is it...300 PIPS down..too bad i was not able to add to the position...im opening a new account with fx sol...just for this drop...its gonna go too low

Hope you guys are doing great ...good luck


be carefull...H&S is for the weekly chart...so you may experience pull back of 100 Pips or so...its normal..keep your stop loss beyond 200 PIPS for the first trade and then pyramid it as the market drops down and then slowly move you stop loses closer...simple and effective