2-hour NZD/JPY chart
Market Structure:
The price was in an uptrend, forming higher highs and higher lows.
It has now reached a strong resistance zone near 87.469, where sellers have stepped in.
There is a break of structure, indicating a possible trend reversal or retracement.
Trade Setup:
A short (sell) trade has been placed around the resistance zone.
Stop-loss is above 87.469 (gray area), protecting against a breakout.
Take-profit is around 85.406 (blue area), targeting previous support.
Technical Observations:
A sharp rejection from the resistance zone suggests strong selling pressure.
A bearish engulfing pattern or similar bearish candlestick formation could confirm the downside move.
The 50 EMA is nearby, which could act as a dynamic support or resistance.
Potential Scenario:
If price fails to break above the resistance, the short trade could play out towards 85.406.
If price breaks above the stop-loss zone, it could signal further bullish continuation.
The price was in an uptrend, forming higher highs and higher lows.
It has now reached a strong resistance zone near 87.469, where sellers have stepped in.
There is a break of structure, indicating a possible trend reversal or retracement.
Trade Setup:
A short (sell) trade has been placed around the resistance zone.
Stop-loss is above 87.469 (gray area), protecting against a breakout.
Take-profit is around 85.406 (blue area), targeting previous support.
Technical Observations:
A sharp rejection from the resistance zone suggests strong selling pressure.
A bearish engulfing pattern or similar bearish candlestick formation could confirm the downside move.
The 50 EMA is nearby, which could act as a dynamic support or resistance.
Potential Scenario:
If price fails to break above the resistance, the short trade could play out towards 85.406.
If price breaks above the stop-loss zone, it could signal further bullish continuation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.