NZDJPY seasonally remains bullish however, the recent Japanese Yen strength has pushed the market lower. Could this give us a better bullish trading opportunity?
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The NZDJPY remains on our watchlist as we are still watching for a bullish trading opportunity in line with the seasonal heatmap. The Japanese Yen is seasonally weakest currency and the New Zealand Dollar is seasonally the strongest currency. However, the strength meter has shown us the JPY has gained strength recently seeing NZDJPY retracing in its bullish trend.
Looking at the chart we can see that the Weekly time frame is in a strong upward trend but the price is in a retracement phase. When the market is in a bullish trend but in a retracement phase we see the lower time frame (4hr) form a bearish trend making lower lows and lower highs.
However, the price is now back at a key support level around 80.00. If we are to see buyers step in at this point we could begin to look for long opportunities.
Trading Time Frame
If we are going to look for the weekly impulsive phase to start we need to look for a change in the bearish 4hr trend. If the price forms a bullish reversal pattern such as an inverse head and shoulders pattern or double bottom pattern. Either of these patterns would show us that the price could be reversing and the weekly could be entering a bullish phase.
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