NZDJPY – Tight Corrective Structure, Breakout Coming | May 26
NOTE – I have active trades in the following instruments: TSLA, XAUEUR, CADJPY, USDMXN, GBPUSD, USDCAD, AUDUSD, USDSGD, CHFSEK & VXZ
NZDJPY – Tight Corrective Structure Close to Breaking (4hr chart)
For the last few weeks, the NZDJPY has been ponging around in a tight corrective structure between 74.60 and 73.30 with several touches on each side. I’m expecting this pair to break this range, either tomorrow before market close or next week.
The overall price action context is mildly bearish while the pair continues to make lower lows and lower highs in a volatile trend.
Remember in volatile trends we look for deeper pullbacks to trade with the trend.
ST traders can look to exploit the range and tight corrective structure till it breaks. I’ll be looking to sell on a pullback towards 76 for a large swing play targeting the bottom of the channel near 73. Only a daily close above the 77 handle will negate my bearish bias.
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