NZD/JPY Daily Chart Our Expectations: Downward trend, horizontal and diagonal resistance. Possibility for short positions with stop 74.00
Alternative scenario: Increasing the price above the diagonal resistance and keeping the levels there will strengthen the control of the buyers and the correction will continue, probably up to 50% Fibo. A breakthrough there will put an end to the downward movement and will accumulate cash flows that will build a new upward movement.
Comment: Downward trend, horizontal and diagonal resistance. At these levels is also 38.2% Fibo, which makes the area even more attractive to sellers. Price action signal of an engulfing bar at resistance levels. DeMarker signals from an overbought zone. For a more precise entry, we wait for the daily bar to close and position ourselves short on the new day after a 30% correction of the engulfing candle.
Stop Loss: 74.00
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