We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
  • RT @HeathaT: The @USTradeRep "fact sheet" on the US-China deal is pretty light on details, but if you're looking for something written down…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/1H5UASpHb7
  • What is the best time to trade #forex? Find out: https://t.co/M9R46rmPUK #tradingstyle https://t.co/k6z9p9v4nY
  • The bear flag pattern is a popular price pattern used by technical traders within the financial markets to determine trend continuations. How can you trade a bearish flag pattern? Find out here: https://t.co/HfXdjTWdEi @WVenketas https://t.co/qV7J1mhGBi
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/L1it36hFzw
  • RT @TaviCosta: The labor market has started to crack. ADP report leads annual change in unemployment rate with a 0.9 correlation. Equity…
  • RT @economics: How likely is it that the U.S. will enter a recession? This tracker will tell you https://t.co/GV0blNwNOx
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVimeY https://t.co/E4GkupnRnC
NZDJPY Reversal Underway- Scalps Target Key Support at 88.20

NZDJPY Reversal Underway- Scalps Target Key Support at 88.20

2014-07-16 20:16:00
Michael Boutros, Technical Strategist
Share:

Talking Points

  • NZDJPY signals near-term reversal off July high
  • Scalps look to sell rallies
  • Event Risk on tap next week from New Zealand & Japan

NZDJPY Daily Chart

NZDJPY Reversal Underway- Scalps Target Key Support at 88.20

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • NZDJPY weekly & monthly opening ranges break- bearish
  • Interim support 88.20/33- Break targets objectives at Aug TL support, 2012 TL support, 8730
  • Resistance at 88.67, 89.45/50, 89.91- bearish invalidation
  • Daily RSI support trigger break on building divergence in price- bearish
  • Event Risk Ahead:RBNZ rate decision, Trade Balance & Japan Trade Balance next week (7/23)

NZDJPY 30min Chart

NZDJPY Reversal Underway- Scalps Target Key Support at 88.20

Notes: A break of the weekly opening range low yesterday shifted the bias to the short-side of NZDUSD with the resulting sell-off now pressing below the July opening range low a t 88.67. The pair rebounded off of near-term support today at 88.20/34 and shorts into this region should be treated with caution until the break.

Bottom line: look to sell rallies while below 89.15 (weekly ORL/61.8% retracement) with a break below 88.20 targeting subsequent support targets into 87.30. A breach above 89.15 puts us neutral with only a breach above 89.55 shifting our focus back to the 2014 high at 89.90 and beyond.

Caution is warranted as we head into event risk next week with the RBNZ rate decision and trade balance coming out on the on the same day as the Japanese trade balance figures. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Technical Relevance

Resistance Target 1

Daily / 30min

88.65/67

23.6% Retracement / July ORL

Resistance Target 2

30min

88.84

38.2% Retracement

Resistance Target 3

30min

89.00

50% Retracement

Bearish Invalidation

30min

89.15

Weekly ORL / 61.8% Retracement

Break Target 1

30min

89.38

78.6% Retracement

Break Target 2

Daily / 30min

89.55/66

Weekly ORH / July High

Break Target 5

Daily

89.90

2014 High

Bullish Invalidation

Daily / 30min

88.20/34

1.732 Ext / Wkly Low / 38.2% Retrace / June Pivot

Break Target 1

30min

88.00

50DMA / ~ August TL Support

Break Target 2

30min

87.75

50% Retracement

Break Target 3

Daily / 30min

87.30

61.8% Retracement / April Lows

Break Target 3

30min

86.66

78.6% Retracement / ~ 2012 TL Support

Break Target 4

Daily / 30min

86.28/29

78.6% & 88.6% Retracement(s)

Average True Range

Daily (20)

51

Profit Targets 13-16pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars this week Tuesday – Thursday on DailyFX Plus (Exclusive of Live Clients) at 15:30 GMT (11:30ET)

Interested in learning about Fibonacci? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.