I am looking to short NZDJPY.
- Originally price was making a higher highs and higher lows.
Price then entered the monthly/weekly resistance supply zone.
Price than formed what appears to be a double top, and price has been unable to break through.
Also a double top at the end of an uptrend can serve as a bearish reversal pattern. That along with price respecting the supply zone is a strong
confluence.
Price made a bearish move out of the monthly/weekly supply zone and formed a new low. This is known as a break of structure, price is expected to reverse it's trend.
When a break of structure occurs, price is expected to retrace to at least the 50.0 fib level to confirm this break of structure. Price ended up retracing to the 61.8 fib level and formed a doji candlestick (this also signals a possible reversal), ultimately forming a Lower high.
Now I am price to make another move to the downside.