The NZDJPY is at a major crossroads, tempting the break of multi-year trendline support, dating back to the 2011 low.
The last 12-24 months' action seems to foretell an accelerated downturn.
My first target is the 69 area, with a risk-reward ratio of around 4.8
Only a break of the succession of lower highs would shift me neutral.
We can see from weekly that volatility became apparently small since 2017.
140.000 - 155.000 Both of the upper and lower of the range are blank.
Therefore, if you go outside one of the upper and lower ranges, it may be possible to expect volatility to recover.
Since it is the most recent range, I will aim for...
Sell Limit EURJPY @ 131.260
SL @ 131.560 (30 Pips)
TP @ 130.360 (90 Pips) (3R)
TP 2 @ 129.900 (136 Pips) (4.53 R)
H4 Head and Shoulders Pattern, entry based off 50% retracement, stop loss above right shoulder, take profit are previous highs and a proper measured move of Head and Shoulders pattern that aligns with structure.
GBP/JPY’s aggressive rally off the low is now at a confluence of trend-lines of varying degrees; one runs down from the May high and the other is the underside of a trend-line rising up from April 2017. It’s a good spot to look for weakness to set in, and depending on how hard it turns lower it could become a continuation trade back below the monthly low.
- 0.786 / Price level: 148.000
- 0.382 / Price level: 145.000 - 145.750
See these as key areas for price action, so buy or sell orders could be placed here if the below indicators are fulfilled. Could also use 0.236 & 1 ratios (and their accompanying lines) as positions for stops etc
Moving Average 5 Day (GREEN)
- Both 5 & 10 day...
Head & Shoulders Pattern forming...
Pink box - if price returns back to that area after the H&S formed and hit target then be ready to set your sell limits as thats when the banks put their orders (from the righ shoulder)
CADJPY close to a Daily region, we can expect a pull back until the trend line and continue the bearish movement, or can break the daily region and continue to the up side until next resistance.
Lets wait for a candle confirmation.
We're looking for a huge push tonight when the eco data is released, if as expected JPY should weaken massively at 1:50GMT while the USD is pushing for the bullish momentum once more. This should be enough to break the 110.370 resistance area.