As every Wednesday, its my turn to analyze the market and come up with one or a few of the currency pairs that have the clearest market conditions…
When I talk about clear market conditions I mean: clear S&R levels plus clear market swings.
When you get that information you also get a very good idea about the sentiment of the market. And if you trade always in the direction of the sentiment of the market, results will come.
I look for both, clarity in the long term and short term charts, only then I start looking for trade opportunities.
And today is the turn of the NZDJPY.
NZDJPY Long Term Analysis
Let me show you the daily chart:
What I like about the NZDJPY is that it is trading in a very clear long term range, from 86.33 to 89.58.
It was recently rejected from the bottom of the range (86.33) therefore it is likely to continue moving up at least until it reaches its next LT level at 89.58.
That means that the NZDJPY is trading in a very clear bullish market condition.
Now lets take a look at the short term charts.
NZDJPY Short Term Charts
Here is the hourly chart:
As long as it keeps trading above 87.50 I’ll be looking for long opportunities.
One trade scenario would be a retracement to the short term support level (87.50), if we get some kind of upward pressure there I’ll go long.
Are you currently trading the NZDJPY? What do you think of my trading plan? What other currency pairs are you currently watching/trading?
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