Ticker tape by TradingView

May 12, 2021

NZD/JPY Deep Dive: Bulls in Control?

Bart Kurek

Looking at the market above, we can see a neatly formed ascending triangle pattern, with resistance at 79.2. The ascending trend line is also being neatly respected, and price has been bouncing off nicely in the past two months.

I am now looking for price to either reach the trend line, then show price action confirmations of a rejection, and then enter and hold for a bullish breakout. Conversely, we can also wait for price to break the resistance level, then look to enter on the retest of this level once we see confirmations of 79.2 being a new support level.

Looking at NJ on the H4 timeframe, we can also see price is nicely channelling to the upside, and we are now looking for price to create the next higher low, before reversing and continuing the medium-term trend.

Look out for a break to the downside of the 78.6 support, where I am quickly expecting price to make the final touch before reversing.

NZD/JPY is considered a major cross-currency pairing but with volatility on the lower side. Although both are within the G10 currencies, this pair sees much lighter transaction volumes than others. Volumes account for less than 2% of the total transactions in the FX space.

Looking at the image above, we can see that there will not be any significant news events coming out throughout the following week. However, all these events together still add and create volatility in the market, regardless of the folder colour.

This is the sort of setup I am looking to possibly take; as we see the news events be filled, we could see price push down towards the channel's bottom and then looking to catch a reversal. Look out for price action confirmations regardless once price reaches between 62 - 79 percent on the Fib retracement above.

A1 Edgefinder

FLASH SALE
Take 40% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
We Like These Pairs For Next Week

As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]

Read More
More Downside On The SPX500 After This?

When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]

Read More
More Upside For Yen After This

The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram