NZDJPY is popular pair for Carry Trade.
If you are carry trader, please get ready.
Currently the candles are drilling up through the clouds. If it continues to go up to 78.0, then it will see the nice sunshine hovering above the clouds. Even if the price stays at the current level for another 2 weeks, it will also see the sunshine. Either way, it is not too far away until the price will be above the clouds.
Now, looking at H4 chart (below), the price is at the top of the range bound. You don’t to buy at the resistance. So please wait for the break, and buy from the re-test of 77.11.
Furthermore, you buy opportunity will be at 78.0 (which is the top of the cloud), where you can also play the breakout strategy.
One little concern is, I see a bearish divergence on H4 Stochastic. So please make sure to confirm the break of 77.11, and also confirm the retest of it, and confirm the reversal to go up again.
If you are not a carry trader, of course, you could sell from this level. The bearish divergence is pushing your back.
Please remember the magic number, 78.0. That’s key price to be very aggressive to buy this pair.
YJ Baik – Forex.Today @ Tokyo