Reasons to go Short on NZDJPY
Hey traders,
I want to share my thoughts with you on NZDJPY before the opportunity leaves us. So, reasons to go short on this pair:
- RSI was recently above 70 (Oversold) on the Daily chart
- 50 MA is turning downwards to meet the 200 MA which is uptrending, so that makes us think that a possible trend change might come
- Fibonacci extension levels from 2 waves meet around the key S/R level which has been proved its strength multiple times in the past, so we can expect that price wants to test this level as Support this time
- Price action tells us that price is moving bearish in an impulse wave pattern and right now it's in a correction move
- Last but not least, trendline has been tested many times recently, so we can use its breakout as a signal to short
Retest is not really expected by me this time, so when I see a good breakout I will go short, if a retest happens I will open bigger positions on short
I want to share my thoughts with you on NZDJPY before the opportunity leaves us. So, reasons to go short on this pair:
- RSI was recently above 70 (Oversold) on the Daily chart
- 50 MA is turning downwards to meet the 200 MA which is uptrending, so that makes us think that a possible trend change might come
- Fibonacci extension levels from 2 waves meet around the key S/R level which has been proved its strength multiple times in the past, so we can expect that price wants to test this level as Support this time
- Price action tells us that price is moving bearish in an impulse wave pattern and right now it's in a correction move
- Last but not least, trendline has been tested many times recently, so we can use its breakout as a signal to short
Retest is not really expected by me this time, so when I see a good breakout I will go short, if a retest happens I will open bigger positions on short
Comment:
Our pair had a fakeout recently but no trade went active. Price may fluctuate a bit before the real breakout.