Dear Carry Traders,
NZDJPY started the week with the Gap down.
On Daily chart, the price has been stuck ( and supported! ) at MPP/55EMA/Prev Support. Stochastic is also below 25%. Thus I am still hoping we can create another Long position here.
However, H4 chart (and even Hourly chart) doesn’t look good. It looks very Bearish. (Price > 21 EMA > 55 EMA)
Thus I don’t think we can blindly buy this pair now.
So how do we know when to buy this pair?
I would like to suggest to wait for the break of 1) MPP and 2) WPP.
The above is the example of MPP Breakout. It would be even better if the price makes Higher high after the break.
Below is the example of WPP Breakout.
To summarize, both Hourly and H4 charts are very Bearish now. So I assume we need to wait a lot, before we can actually buy this pair.
Hope this analysis helps you a bit.
YJ Baik – Forex.Today