Here we have a bearish bat on the NZDJPY; the pair is hitting major weekly resistance and showing as oversold on the daily chart.
American investment banks Goldman Sachs and JP Morgan are expected to show slow quarterly growth this afternoon, amidst speculation heading towards this afternoons US CPI 0.09% announcement (US still not making their 2% target). As a result, investors are said to be moving their money to the asian markets- aiding Yen strength.
I am holding a short position in the NZDCHF and long the AUDNZD; this pair taking a bearish turn would show confluence with my two current trades (both running in profit).
It is clear to see that price on this pair is at a level where there has been major price deflections- prior to which the level has acted as a pivot level.
Risk at 1:2.24 (sticking to the 1:2 minimum. Remember and keep the stop loss in an area where it would render your trade invalid, rather than looking to maximise profit (...maybe a little). TP at 61.8% retracement level of the distance form A to D.
Bat ratios
B: 0.382-0.5
C: 0.382-0.886
D: 1.618-2.618
xD: 0.886