Here we have a bearish bat on the NZDJPY. The pair is hitting major weekly resistance and showing as oversold on the daily chart.
American investment banks Goldman Sachs and JP Morgan are expected to show slow quarterly growth this afternoon, amidst speculation heading towards this afternoons US CPI announcement (US still not making their 2% target). As a result, investors are said to be moving their money to the asian markets- aiding Yen strength. I am holding a short position in the NZDCHF and long the AUDNZD; this pair taking a bearish turn would show confluence with my two current trades (that are running in profit).
Risk at 1:2.24 (sticking to the 1:2 minimum. Remember and keep the stop loss in an area where it would render your trade invalid, rather than looking to maximise profit (...maybe a little). TP at 61.8% retracement level of the distance form A to D.
Bat ratios B: 0.382-0.5 C: 0.382-0.886 D: 1.618-2.618 xD: 0.886
Komentarz
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It is clear to see that price on this pair is at a level where there has been major price deflections- prior to which the level has acted as a pivot level.
Great analysis Kyle. I think you meant to say RSI is showing "overbought" on the daily chart. Spot on!!
KyleMcQuade
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@PaulSiljee, I really need to stop looking at several charts at once haha, toking ad the cad/yen at the same time done me no favours lol! But yes, I was referring to the overbought RSI. Thank you for pointing that out :) Thank you for the kind words!
PaulJonFX
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@KyleMcQuade, Haha! Good price action today for our shorts on NJ. I wish the swap rate on this pair wasn't so brutal =(
KyleMcQuade
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@PaulSiljee, it can be a sore one at times man.. who's your broker?
@PaulSiljee, Ive paid almost $700 so far in swap fees for holding 10 days. Yikes! I forgot to ask you. Whats your prediction for Thursdays BOJ news? Rates should stay the same im not sure how the market is pricing this in.