NZDJPY has been down trending but every now and then, it has been on a long consolidation. Today the pair produced two Bearish H4 candles so far. If we get a down side breakout by an H4 candle and we get an H1 Bearish Engulfing candle later, then selling the pair would get us some green pips with an excellent risk and reward ratio. Let us have a look at the H4-NZDJPY chart.
The level of 78.975 has been working as a level of Resistance here. The first H4 candle was a Bearish Dozi and then next one was a strong Bearish Candle. We have not had a breakout here yet though. The level of 78.450 has to be broken and held by H4 candles. If that happens then, we would have to wait for an H1 Bearish Engulfing candle right at the level of 78.450 to take a short entry. Let us have a look at the summary of the trade…
- Sell Stop Order: 78.450
- Stop Loss: 78.795
- Take Profit: 77.550
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
None of the currency on this pair has a high impact news event today. The NZD has a “ Low impact news event at GMT 22.45. Thus, if we do get the breakout, then there is a strong possibility that the pair would offer us the entry. However, whether we get the breakout or not this is the question. Let us patiently wait and keep our eyes on the pair to get the breakout.
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