Simple break and retest scenario, and daily candle is about to close as a bearish engulfing.
Wait for pullback then sell!
1. This profile is for educational purposes ONLY!
2. The setups given are my own perspective of the forex market and by no means require action!
3. Trading involves risk, past profits do not guarantee future results, so...
As i stated on Monday, the majority of yen pairs have started recovering from the drops of last month. This pair I took a long on Monday in my premium group and looks set to hit my target and potentially target 76.5 in the long term.
Trade safe and good luck!
Good morning traders. The Kiwi Yen is breaking support to the downside with weakness in the NZD pairs & supporting strength from the Yen.
Here's the performance of the two currencies since the start of the London session this morning.
The chart shows the JPY weighted index on a daily time frame, creating a bearish bat harmonic pattern.
Furthermore, the last 3 daily candles together have formed a three pin pattern (Evening Star formation) indicating bearish reversal.
I expect JPY to start showing signs of weakness in the next couple weeks across the board, meaning potential XXXJPY buys.
NZD weighted index on the 12H time frame, we can see the market has tapped off a previous zone of reversal while creating convergence on MACD, and creating an inverted head and shoulder formation.
Seeing as NZD and AUD move the same way, and both currencies look very bullish, I expect NZD to gain strength across the board for the next month or so....
No rate cut tomorrow folks .
Trade the spike and get out 7 min top . Could be similar to AUD rate hold .
If it runs more than first 15 min candle could go back in risking half the profit you already made with smaller lot size .See where it goes .
The wedge formation shown is not pure. It is complex. The tighter sharper wedge could see price falling out and to the south. The other enclosing wedge could see price rising north. In situations like these one has to decide:
1. Long with an ATR appropriate stoploss.
2. Short with an ATR appropriate stoploss.
3. Stay out completely.
In addition to the wedge...
. There is a possibility of temporary retracement to suggested support line (75.2). if so, traders can set orders based on Price Action and expect to reach short-term targets.
. NZDJPY is in a range bound and the beginning of uptrend is expected.
. The price is above the 21-Day WEMA which acts as a dynamic support.