Waiting for Reversal Lower
Good day traders! NZD/JPY finally made it into the price zone that I first identified on the 31st of October. It has been a long wait, but price is now within the sweet spot where I’m expecting a reversal lower.
Ideally, I would like to see price interact with the upper blue median line of my Schiff pitchfork first, which currently lies around 70.54, followed by a reversal candlestick formation on my Daily chart (similar to the red arrows at previous highs). Also, note that a 0.618% Fib retracement level lies slightly above there at 70.59.
A more conservative approach will be to wait for price to reverse from within my price zone and trade back into that previous range. A break below the 69.68 level will be a good indication that a top might be in place with lower targets at 68.99 and 67.16.
Note: If price does not reverse lower and trades above the 71.00 level, then my trade idea will be invalidated.
Until next time, happy and safe trading!