GBP/JPY, a reversal sign

Our lovely cross GBP/JPY just gave us a very nice long term sell signal which is just waiting for confirmation right now, from the chart below “weekly chart” we could detect two types of sell signals:

1- A hang man weekly candle was formed on 20 - 24 July, 2008 .

2- Trend line breakout we was expecting last week and has already done this week.

The third signal would be a moving averages cross-over we are waiting for.

From the daily chart we suggest to take a sell position from the current price area “under 210.65″ with a small amount as it may try to go up trying to test the broken trend again, there we can go add more short positions, our first target would be 206.60 - 207.00, second target would be 204.60 and the last target would be 198.15 - 201.50 area and i recommend 199.60 which was a good support for it always, our stop loss would be above 213.50

KIWI, Head&Shoulders detected

As Chart shows us, kiwi formed a Head & Shoulders pattern on the weekly chart, while daily studies somehow show that it’s heavily sold which gives us a sign for an expected pullback to 0.7550 - 0.7620 which would be a neck line test, i think a closing under the neck line suggesting to open some shorting positions and waiting for a retracement to the mentioned above area for opening more short positions, targetting 0.68xx area.

Moving Averages 13, 52 is so near now, a cross-over would be another sell sign, while target point “0.6800″ is 61.8 fibonacci line from 28 th. June 2006 low “0.5928″ till 9 th. March 2008 High “0.8214″ and at the same time Head & Shoulders expected target.

Last word to be said is “take care”, it’s a long term trade so we would taking our positions with a small amounts.