NZD/JPY consolidation into 70.00 resistance

NZD/JPY advancing into the 70.00 resistance level for a possible distribution zone.

NZD/JPY

Must wait for a solid bearish candle reversal signal for optimal entry, or a solid candle close below the yellow trend line for NZD/JPY supporting entry.

 
Key Points:

  • Price hugging above the 200 EMA
  • Price holding above the 50 EMA
  • Approaching 70.00 which coincides with upper Bollinger band
  • RSI also moving into overbought territory
  • 85 Fibonacci retracement level cluster with 70.00

 
Key Levels:
Support – 50 EMA, 200 EMA, 69.470, 69.870
Resistance – 70.00, 70.10
 
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 69.900
Supporting Entry – 69.800
 
Candle Reversals for entry

  • Bearish Shooting Star
  • Bearish Engulfing
  • Bearish Dark Cloud CoverBearish Candlesticks

 
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
 
IF: Price breaks above 70.150 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
 
Reward / Reward Targets:
Optimal Entry 69.900 – Target 1 69.470 = 2.8x Reward to Risk
Supporting Entry 69.800 – Target 1 69.470 = 1.5 Reward to Risk

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