While a lot of attention has been paid to the charging Yen bull around this time of year (mid August – October), based on its seasonal behaviour for the past 20 years...the technical set-up for a long is pretty strong – unlike the Yen as it defies its typical behaviour and weakens dramatically against the USD.
Do we have a buy opportunity for NZDJPY? The technicals suggest this could be the case and the performance of the Australian Dollar against the Japanese Yen has given us a good potential heads up...could NZDJPY mimic its surge to the upside?
Who knows. But the technical probability seems to point towards a long with good profit potential.
Yesterday’s bullish pin bar reversal represents a higher low in a double bottom formation on the daily timeframe. Could this be a pivotal turning point? The break of yesterday’s high could therefore represent a good “point of acceleration” if this formation does play as a double bottom reversal and the neckline breaks, causing price to hear to the upper part of the range.
Furthermore, we have bullish reversal divergence on the stochastic and RSI and a bullish reversal pattern (double bottom on the hourly timeframe)
Traders will typically have their orders above the break of yesterday’s high (plus spread and an additional pip) with a stop-loss below its low (minus spread less that additional pip). They will always use a stop-loss to protect their trading account against losses which exceed what they are willing to risk on the trade.
After all, markets can do anything at anytime and nothing is guaranteed.
Do we have a buy opportunity for NZDJPY? The technicals suggest this could be the case and the performance of the Australian Dollar against the Japanese Yen has given us a good potential heads up...could NZDJPY mimic its surge to the upside?
Who knows. But the technical probability seems to point towards a long with good profit potential.
Yesterday’s bullish pin bar reversal represents a higher low in a double bottom formation on the daily timeframe. Could this be a pivotal turning point? The break of yesterday’s high could therefore represent a good “point of acceleration” if this formation does play as a double bottom reversal and the neckline breaks, causing price to hear to the upper part of the range.
Furthermore, we have bullish reversal divergence on the stochastic and RSI and a bullish reversal pattern (double bottom on the hourly timeframe)
Traders will typically have their orders above the break of yesterday’s high (plus spread and an additional pip) with a stop-loss below its low (minus spread less that additional pip). They will always use a stop-loss to protect their trading account against losses which exceed what they are willing to risk on the trade.
After all, markets can do anything at anytime and nothing is guaranteed.
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