A1 Trading Company

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

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

My Crazy Trade On Gold: Up $8000

Hey Traders! This week has been wild for Gold! Thanks to insights from the EdgeFinder, I've been in a trade on XAUUSD since May 3rd. Initially, I jumped in due to weak jobs and PMI data, sticky inflation, and solid support/market structure. Here’s a quick look at my gold trade: Entry Recap: On May 13th, […]

Read More
Is Gold the Buy of 2024?

Rates move lower after the BoE announced their latest monetary policy report to keep rates unchanged at 5.25%. Unemployment came in higher this morning with the 30-year bond auction coming up Thursday afternoon. In the midst of a slow news week in the US, gold is sitting at a very favorable position according to the […]

Read More
Yields Fall Ahead of Earnings

More earnings reports come out this week is causing an inflow of buyers in the equities market while yields begin the week on a decline. Last week's Fed meeting showed up as "less hawkish" than investors expected causing risk appetite to increase at the start of the summer months. EdgeFinder Analysis As we come off […]

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
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenucross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram