NZDJPY has been having a consolidation after being Bullish on the H4 chart. The chart suggests that the price might produce a Double Top since a strong Bearish move was made from the resistance zone of that consolidation area. Let us have a look at the H4 NZDJPY chart.

See on this chart, the price took a strong Bullish move. However, the level of 78.100 came into play and became a strong level of Resistance. The pair produced an H4 Bearish Engulfing candle today as well right on that level. If the price goes up there again, and produces another H4 Bearish Engulfing Candle and breaches the level of 77.635, then selling the pair would get us some green pips. Let us have a look at the summary of the trade...

• Sell Stop Order:  77.635
• Stop Loss:  78.100
• Take Profit: 76.885
• 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

The biggest news event of a month “NFP” is to take place at GMT 13.30 Today. Almost all the pairs are going to be volatile today. NFP usually helps pairs make breakouts and make a new trend. NZDJPY took a Bullish move and a consolidation. Thus, we are eyeing on the pair to make a breakout towards the downside. This offers us a better risk and reward ratio. If it was a usual day, we would have looked for a breakout towards the upside instead. Another thing we must remember that today’s H4 signal candle has to be produced after the NFP hour. NZDJPY Price Action Analysis – 6th April 2018