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
Comment
⋅
Our pair had a fakeout recently but no trade went active. Price may fluctuate a bit before the real breakout.