Potential NZDJPY Moves on Weekly - Very Textbook
The NZDJPY has been making textbook moves for the past 5 or so months and nows the perfect time to see some changes. We had a wedge pattern forming, as well as a bat pattern within the wedge as a little reassurance to buy. Following the leg formed by the bat pattern, we turned around at the .618 giving us a very nice 2618 formation. Going on, theres now a couple of scenarios we could have here;
1. Long position continuing on with wedge pattern.
- Look for a reversal around the NZDJPY 75.80 area.
- Stop loss - just make sure you don't get a lower low lower close candle. If you do then close the trade and take the loss.
- Take profit @ 78.04. Would recommend either trailing your stops as price goes up, or closing half your position @ 77.07
The other alternative;
2. Short position due to breakout. In this case;
-When price gets to that 75.8 area, look for a lower low lower close candle (L3C). The magnified areas in the photo explain this.
- You must wait for the close. Use the Daily chart to find the L3C candle.
- Confirm the close on the weekly. There may be a retest of structure following the L3C so beware of a slight retracement.
1. Long position continuing on with wedge pattern.
- Look for a reversal around the NZDJPY 75.80 area.
- Stop loss - just make sure you don't get a lower low lower close candle. If you do then close the trade and take the loss.
- Take profit @ 78.04. Would recommend either trailing your stops as price goes up, or closing half your position @ 77.07
The other alternative;
2. Short position due to breakout. In this case;
-When price gets to that 75.8 area, look for a lower low lower close candle (L3C). The magnified areas in the photo explain this.
- You must wait for the close. Use the Daily chart to find the L3C candle.
- Confirm the close on the weekly. There may be a retest of structure following the L3C so beware of a slight retracement.