FX Reversals: NZDJPY Tests Daily Range
- NZDJPY Approaching Range Resistance
- Range Support Found at .8630
- Trend Continuation on a S4 Breakout
AUDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
After a slow morning start, the NZDJPY is moving towards short term range resistance. Currently range resistance sits at the camarilla pivot line marked R3 in the chart above, near 86.73. Reversal traders should watch this value in the event that price turns after a test of the mentioned price ceiling. The current trading range measures 42 pips. Traders looking to take advantage of the morning range, may begin targeting support found at S3, near 86.31.
If the event that price moves through the previously defined range, a change in market conditions and trading plans should be considered. Currently final support for the NZDJPY lies at the S4 camarilla pivot near 86.11. A break below this value would create an intraday lower low back in the direction of the currencies primary trend. As well, a break above the R4 line of resistance line at 86.93, could signal a larger counter trend correction. In either event, reversal traders should consider concluding any range positions while looking for new opportunities in the markets chosen direction.
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---Written by Walker England, Trading Instructor
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