Good morning everyone and hope your trading is going well. This morning I thought I would mention the NZD/JPY trade as it looks as though it could be preparing for a move higher. The bearish engulfing signal of five days ago at 91.00 was on obvious sign of a pullback which seems to have lasted until today – hope you closed out if you were long at this point.
The candle that is now forming is a doji hammer which seems to have bounced off previous support at the 83.50 level. Current pair are trading at 84.98. This looks as though it could be the start of the reversal so I would consider entering a long trade here, but I would wait until the end of today, just to see if the candle does actually form. Whilst I do not normally trade on one candle alone, in this case I feel it may be worth the risk, provided the candle does actually form – so let’s wait and see. If it’s a hammer then I will be going long for the next few days. If your candlestick chart reading is a little shaky have a look at my site on japanese candlesticks and advanced japanese candlestick patterns. OK – lets keep an eye on this one and see what happens. Good luck and please keep in touch.