In higher timeframe, NZDJPY is in a downtrend. The price fell straight down from the top of channel trend-line all the way down to bottom of channel which is also a support area. From there, the price retraced upwards to the 50 Fibonacci level + resistance area.
Price is also about to bounce off of two lower-time frame (4H) trend-lines. Furthermore, still on the lower time frame (4H), we see price has just broken through trend-line support to create a lower low and it failed to make a higher high (with a shooting star candlestick patter, which is a bearish reversal pattern).
For these reasons, I expect price to continue downwards to the next support level. It will continue downwards due to the simple retrace of 0.5 Fib level, plus it is in resistance area, plus overall downtrend, and also it is going to also bounce off the low-time frame trend lines, and bearish candlestick pattern.
This gives us a nice short opportunity with a 2.5:1 ratio.
Let's see where this goes baby!
Price is also about to bounce off of two lower-time frame (4H) trend-lines. Furthermore, still on the lower time frame (4H), we see price has just broken through trend-line support to create a lower low and it failed to make a higher high (with a shooting star candlestick patter, which is a bearish reversal pattern).
For these reasons, I expect price to continue downwards to the next support level. It will continue downwards due to the simple retrace of 0.5 Fib level, plus it is in resistance area, plus overall downtrend, and also it is going to also bounce off the low-time frame trend lines, and bearish candlestick pattern.
This gives us a nice short opportunity with a 2.5:1 ratio.
Let's see where this goes baby!