A new swing in the NZDJPY

A few weeks back I wrote about the NZDJPY, back then the NZDJPY was rejected from the LT resistance level at 89.57…

It was trading in a very clear bearish condition and because of that, only short opportunities were in play.

Then it hit the next LT support level 86.25 and it traded for a few days around that level… And apparently the NZDJPY has been already rejected from that level…

Here is how the dialy chart looks like:


There are a couple things that I like about this chart:

  • Swings clarity
  • S&R clarity

When we’ve gor both of them, we have a very good idea of what the market is doing and what it is likely to do.

But not so fast…

We still need to confirm this using the short term chart, this way make sure the market has been already rejected from that level.

Here is the hourly chart:


There is one slight problem with this chart, the short term level 86.69 has been rejected only once, so we still need the confirmation of this level to start looking for trade opportunities.

My plan is to wait for a retracement to that level and if it gets rejected from there, I’ll start looking for long opportunities.

Your turn

Did you take advantage of my previuos post on the NZJPY? What do you think now about the NZDJPY? Are you going to trade it?

Share your thoughts!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Robinson

    Hi Raul, this pair is trading in a very nice narrow range between +- 87.57 and 87.17… I beleive there is a bullish sentiment so I’m waiting for it to break the upper boundary since there would be a potential upsize of approximately 200 pips. What do you think?

    • Raul Lopez

      I wouldnt take a breakout trade there Robinson… It’s still trading near a LT leve… once the market breaks the 87.60 level I’d start looking for trade opportunities though, but only after the breakout…

      Good luck!

  • Eviano

    Take a look at AUDNZD. I am see a bullish condition.

    • Raul Lopez

      That’s correct Eviano!

  • Eviano

    The analysis is very correct but I am seeing a little reversal at 87.40. What do you think?

    • Raul Lopez

      What makes you think this is a reversal? It’s just one bearish candlestick…

      Good luck Eviano!

  • Chad Hogan

    Hi Raul,

    I find this scenario regularly. Only one rejection on the SL charts. Ive been watching the NZDJPY and waiting for a retracement. If we dont get a retracement back to support would you consider a buy stop above swing high with only one rejection as you mentioned?

    • Raul Lopez

      I dont think so Chad, I’ll rather wait for the pullback or get new ST levels… I know its difficult to be patient sometimes, but we’ve got to wait until we get a clearer level there…

      Have a great weekend Chad!

  • richard

    Hi Raul
    good opportunity coming. Its going sideways at 87.00 and I respect these 00 points. Looking at a buy order at 87.15 and a sell order at 86.85 . Its a swing situation at 87.00 level. Use the 1 hr chart and reasonably tight stops in case the big boys try and take out the minnow orders and cash up doing so.
    thanks for the heads up. regards Richard

    • Raul Lopez

      Did your trade get triggered?

      Good luck Richard!

      • richard

        No held off putting a trade becos of 87.00 point and decided a clearer swing from that area is needed

        • Raul Lopez

          Ahhh ok ok

  • dominiek

    seems good… am also considering gdpcad long… seems a clear bullish signal is developing on the daily… what do you think?

    • Raul Lopez

      I wouldnt consider going long here… it is currently trading near an important level, we need to wait a little longer…

      Good luck!

      • now to watch! it has retraced to 86.72 area –

        • Raul Lopez

          That’s correct Craig… I have the feeling that we are going to have to wait till next Monday…

          • dominiek

            Hi Raul,.. what do you think of nzdjpy? was going great until yesterdayevening.. better to close it ?

          • Raul Lopez

            Yep, I’d close your trade, the ST levels are not clear anymore, I’m waiting for the NZDJPY to show me clearer in the short term charts in order to start looking for trade opportunities again…

            Good luck!