GBPJPY evening star candle pattern
The GBPJPY daily chart confirmed an evening star reversal candlestick pattern at today’s close, and into this evening’s Asia trading price has fallen quite hard on this pair already. For weeks now I have been happy to be buying up this pair at every chance but now with this confirmed reversal pattern I suspect price is ready to retest the daily 50ema, now near 151.00. The negative divergence outlined on the CCI indicator also indicates that a large retracement is looming. I like this pattern better than the recent fake out similar pattern eight days ago, which did confirm but then promptly again re-entered its upward channel the very next day, it faked me out pretty good and I took about a -50 loss on it. But the reason I like this most recent evening star pattern is that it is coupled with the negative divergence on the CCI and the CCI is already pointing down and back through the 100 line. I am thinking that the GBPJPY price action may end up making a large down pointing head and shoulders pattern, with a neckline building at the 155.00 level. If that does happen then I will be looking for price to continue to fall to the 155.00 area this week, then see if price rebounds to indeed build a right shoulder around 160.00. If price does get there, then I will enter a short trade there back to 155.00. But I am getting ahead of myself here! First, I will look for more shorting opportunities down to 155.00. I expect 155 to hold support but there is also a chance that price will knife through there and head on to the daily 50ema near 151.00. Good luck and good trading.


Jennifer Shotts

Casey Stubbs has been trading for 14 years. He started trading in the stock market and moved to Forex.
Richard draws from his extensive experience trading to write insightful trading articles for both fundamental and technical analysis.
Stay Updated with the most effictive Forex strategies and secrets with Jed & Kirk Norwood.