NZDJPY: Why Sell Signals Should Be in Priority

What type of trades are you searching for in this market? Do you want to have buy opportunities, or you already hold long positions? Or maybe you would like to sell?

Let's look at the chart and try to understand in which direction you will have more chances to succeed.

I would like to use the weekly timeframe as it gives the most important information from my point of view. The price reached the resistance zone formed by SMA100, two resistance levels, and the main downtrend line. The market will have to be supported by solid fundamental reasons in order to pass this resistance. I'm not sure that buying in such market conditions will be a good idea. I would like to think about selling using the daily and hourly timeframes from the zone from the weekly chart. Both types of signals like reversals, breakouts, false breakouts can be profitable if you find the right moments when to open sell trades.
With the right money management, sell trades can give you good profit. Because if the resistance zone can stop and reverse the price, the market will have room for the downward movement in the direction of the bearish trend.

MACD histogram supports the further downward movement. RSI confirmed the price reversal. It will be able to confirm the reversal one more time if the price bounces from the resistance again. DMI does not support buyers as ADX line falls. It gives us an additional bearish signal and allows to open sell trades.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.