The price is below the moving average of 20 MA and MA 200, indicating the downward trend.
MACD is below the zero level.
The oscillator Force Index is below the zero levels.
If the level of support is broken, you shall follow the recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 67.50
• Take Profit Level: 66.50...
A bullish crab pattern setup for a countertrend trading opportunity. The retest of the support line nicely touched the previous support and rebounded.
Traders who have missed this entry can wait for a retest of support of low of the candle body to engage the trade.
Hello and welcome to my Trade Idea of the currency pair NZD/JPY.
Let's start with the Top Down Analysis.
Monthly: Monthly is in a very strong downtrend.
Weekly: In the weekly timeframe we see that the price breaks the lows and close under these. As well the last weeks had 2 big bearish candles which confirm that the trend is bearish.
Daily: The daily...
Price has clearly broken bearish and we are in a clear downtrend. Price is currently as point of support which is price is currently respecting. We may potentially see price move up at re-test 71.028 .We can potentially see price move bearish from this point toward our target at 66.629.
Stop loss marked at 220 pips - Manage your risk accordingly!
Risk to reward...
Trading suggestion:
. There is a possibility of temporary retracement to suggested support line (71.500). if so, traders can set orders based on Price Action and expect to reach short-term targets.
Technical analysis:
. 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.
....
Good example of the triangle theory thanks to UJ seasonality. The theory says that a triangle will exit into the same direction as it came in. In this example the price came in from the south into direction north so it will exit north and validate the triangle.
It's breaking out north while I am typing this.
Great buy structure on the NZDJPY. The depth of the correction provides for a tight stop loss and far take profits. If price dives below the red line danger zone we can say that the pattern is invalid. In further investigation you will also find that there is MACD divergence that signals a break out. It may not be long term but if we are correct the move will be fast!
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