NZD/JPY - potential long opportunity. If the market retraced back down to the lower support level. A long (buy) opportunity will then become available. As you can see from the chart analysis. This currency pair has bounced off this support level, every time since 2009. this further supports a possible long entry.
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If you've never heard of the Yen 'flash crash' on 3rd Jan 2019 (after a 4 day bank holiday in Japan), you definitely need to watch this. We have a 10-day bank holiday in Japan in Golden Week.
The previous mini-crash was on one day. Loads of retail forex traders were wiped out. Now we're staring at potentially something more than a mini-crash on Yen pairs.
After breaking the bullish trend, I called a short on this pair, however, the currency pair shot up stopping me out. Currently, the pair has formed a double top and it looks like a bearish trend is being made due the formation of the most recent trendline. If the currency pair moves down, I will target 150 pips where we have our 61.8 fib level,. Will be risking 50 pips.
I'm using this mainly to see how it influences other stock markets.
I've entered a small position size short on this based partly on experience on the 1H time frame. But that's not where the main action is.
This market tends to influence events in the Indian and Japanese stock markets.