NZDJPY: Trade Plan Update

Not long after posting this trade plan Bank of Japan threw an almighty spanner in the works.

thinkforex nzdjpy

NZDJPY Trading Account?

The original analysis called for signs of weakness below neckline of a weekly Head and Shoulders reversal, to consider this week for short trades in line with the bearish momentum. Within hours (maybe even minus) of this post the neckline was completely obliterated by the Bank of Japan’s talk of further QE, seeing the Japanese Yen plummet to a 13-year low and weaker across the board against all Majors.

Now trading at a 6-week high, momentum now clearly favours bullish positions but caution needs to be taken as we approach previous resistance levels. With last week seeing a gain of over 3% I suspect that if we do see any pullback within last week’s range, it is likely to be shallow.

thinkforex nzdjpy_1

NZDJPY Trading Account?

Intraday charts present potential for a bullish flag to form with a support zone between 86.70 to 87.10 providing potential for buy setups.

In the event of a deeper pullback then support down to 86 could be considered for bullish setups, although at this stage I suspect the upper support zone should hold.

Initial target is around 88.60 highs and 88.65.

Wednesday may provide the catalyst for NZDJPY as we have unemployment and GDT prices.

Let’s get started...

Broker Rating Markets Available Fees Open an Account
Kawase Logo
1 Star2 Stars3 Stars4 Stars5 Stars
Rating 3.44 /5
(16 votes cast)
Shares, Indices, Forex and Oil Spread From 0.1 and 0.2% Commission Visit Website
MaxFx Logo
1 Star2 Stars3 Stars4 Stars5 Stars
Rating 4.66 /5
(90 votes cast)
Indices, Forex, Metals, Shares From 0.1 Raw Interbank Spread Visit Website
London Capital Group (LCG) Logo
1 Star2 Stars3 Stars4 Stars5 Stars
Rating 0.43 /5
(127 votes cast)
CFDs - Foex, Indices, Stocks, Commodities, Bonds, Interest Rates Variable spreads from 1.2 and small 0.1 commission on Shares Visit Website
Risk warning: Your capital may be at risk. CFD trading is suitable for experienced traders and not beginners.