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Nzdjpysell

NZDJPY: A comprehensive Analysis. Will it reverse soon?NZDJPY has been showing a lot of strength of late. After breaking through the all-important support of 72 during last July and plummeting to 66, NZDJPY has recovered all its losses. For the last 3 months, NZDJPY has been rallying consistently. This has happened due to better risk appetite in the markets. Looking at the sentiment, I can assume that a lot of retail traders are short on this pair. In fact, retailers have been selling this all throughout December. So, is there any hope for the sellers? Technically, NZDJPY has reached the 100 week EMA which can dampen the rally. Secondly, it has also reached a descending Trendline Resistance, which has stopped the price on previous occasions. And, most importantly, price is now at the Broken Support zone which can obviously work as a strong resistance now. So, technically, there is a good chance for the sellers. However, the market doesn't work as per colorful lines and patterns on our chart. It works when the institution step in. Based on price action, I can definitely say that the rally is overextended at this point. We have also seen the presence of institutional sellers in the 72 area. So, if I see price struggling here or a strong downward impulse, I will sell this market. Some kind of triggers such as bad economic data or risk-off events can push the price downward.
Short
by YourLazyTrader
1
NZDJPY at critical Area, could go either way.In all my previous NZDJPY ideas, I recommended traders to sell NZDJPY. If you followed, you might have made close to 200 pips profit from those. However, through this analysis, I want to say that NZDJPY could bounce upwards in the coming days. Today's daily candle might show indications of a trend reversal as this candle has formed at the 100D EMA. So, if NZDJPY closed around 71.25 today, we could very well see a trend reversal in the coming days. That being said, if price does manage to break the 71 barrier and manages to stay below it, the next area of importance will be 70. Ideally, I would keep an eye on today's closing price before executing any further trades.
by YourLazyTrader
1
NZDJPY Sell Trades are still validI mentioned about selling NZDJPY at 73.25 in my previous analysis. As you can see we are already 50 pips down from that point and I believe there is a long way to go. NZDJPY rally failed at two crucial areas: 1) The 100 Week EMA 2)Descending Trendline Resistance. In addition to the technical factors, there are other fundamental aspects such a correction in the stock markets can happen very soon which will lead to a sell-off in risky assets like NZD. So, I will continue to sell NZDJPY in the 72.75-73.50 area with SL above 74. If the trade goes into profit, we can take profit at 72, 71.30 and 70.02.
Short
by YourLazyTrader