NZD/JPY Trade Setup: Navigating the Fibonacci Sequence
Daily Chart Analysis:
The daily timeframe for
NZDJPY shows a pair trading within an established uptrend, guided by a rising trendline. Recently, we have seen the price retrace to the 0.75 Fibonacci level at 90.679, which may serve as a potential launchpad for the next leg up. Above, an unfulfilled Fair Value Gap (FVG) looms, hinting at a target for bullish price action.
4-Hour Chart Details:
The shorter-term 4-hour chart gives us a more granular view of the price hugging the 0.75 Fib level, displaying hesitation within this zone. This consolidation is key to our strategy, as a breakout could indicate the continuation of the upward trajectory.
Trade Idea and Levels:
Entry Point: We're eyeing the 0.75 Fib level (90.679) for a possible entry, watching for bullish confirmation in the form of a 4-hour candle closing above this zone.
Stop Loss: A stop loss could be placed below the trendline and recent swing low at 90.170 to protect from any unexpected reversals.
Take Profit: The primary target resides at the next significant FVG around 92.204, with potential to extend gains if bullish momentum persists.
The NZD/JPY pair's adherence to Fibonacci levels and FVGs presents a structured approach to catching the next wave. As we wait for confirmation, we keep a close eye on macroeconomic factors that could sway JPY pairs.
The daily timeframe for
NZDJPY shows a pair trading within an established uptrend, guided by a rising trendline. Recently, we have seen the price retrace to the 0.75 Fibonacci level at 90.679, which may serve as a potential launchpad for the next leg up. Above, an unfulfilled Fair Value Gap (FVG) looms, hinting at a target for bullish price action.4-Hour Chart Details:
The shorter-term 4-hour chart gives us a more granular view of the price hugging the 0.75 Fib level, displaying hesitation within this zone. This consolidation is key to our strategy, as a breakout could indicate the continuation of the upward trajectory.
Trade Idea and Levels:
Entry Point: We're eyeing the 0.75 Fib level (90.679) for a possible entry, watching for bullish confirmation in the form of a 4-hour candle closing above this zone.
Stop Loss: A stop loss could be placed below the trendline and recent swing low at 90.170 to protect from any unexpected reversals.
Take Profit: The primary target resides at the next significant FVG around 92.204, with potential to extend gains if bullish momentum persists.
The NZD/JPY pair's adherence to Fibonacci levels and FVGs presents a structured approach to catching the next wave. As we wait for confirmation, we keep a close eye on macroeconomic factors that could sway JPY pairs.
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