Dear NZDJPY carry traders,
Here is one extra tip for you.
NZDJPY remains one of the Bullish currency pair, as seen on Ichimoku Daily chart.
However, I see a Bearish Divergence on the Daily Stochastic as seen below.
This is a big concern for Carry traders. Simply it may be better to hold on buying this pair, until Stochastic is back in the up cycle.
On H4 chart, if the price makes a new Higher High, then that should be good. We will be good to buy. But what I am afraid of is… making series of Lower Highs and Lower Lows, forming reversal pattern.
If that’s the case, you could short this pair as a short term trades. But that won’t be a carry trade.
If you are really carry trading, perhaps you should wait until Daily Stochastic turns back up.
YJ Baik – Forex.Today @ Tokyo