Two Simple Scenarios to Trade the NZDJPY that Needs ATTENTIONTrade Idea:
Previously, buyers have been trying to push this pair higher and above 200EMA, but we can see major sellers stepping in after price has reached the 200EMA (as highlighted from the green circle).
Last week, we saw a significant push from buyers once again and breaking thru the 200EMA and now price is consolidating between a major and minor S/R zones. So I'm expecting two potential opportunities for great trades here:
1st scenario:
200EMA will reach the minor support zone and act as support in combination with the minor support zone, and buyers will step in and push the price even higher, so my entries, TP, & SL will be as follows:
Entry:
Aggressive Entry: 65.470
Conservative Entry: 65.320
TP & SL:
TP1: 66.915
TP2: 67.978
SL: 65.020
2nd Scenario:
Sellers will once again take over this pair and push the price down again to previous major support zone. In this case, I would like to see a break of the 200EMA, in combination with favourable price action to enter the market and target the next major support zone, so my entries, TP & SL will be as follows:
Entry:
Aggressive Entry: 65.200
Conservative Entry: Break of 200EMA
TP & SL:
TP1: 64.540
TP2: 63.790
SL: 65.610
Technical Analysis:
* Range bound market.
* Price is nearing 200EMA.
* RSI currently bouncing off 50 level, indicating buyers strength for now.
Fundamental Analysis:
* De-listing of Chinese companies from US major stock exchange ( Bearish CNY = Bearish NZD)
* Rising tension between US and China relationship ( Bullish JPY)
