The NZD/JPY pair is everyones favourite carry trade, including me, but at times it pays to be cautious, despite the good returns available. If we take a look at the daily and weekly charts, the pair have been trading sideways for over a month. On the weekly charts we have two hanging men and three dojis, not a partularly good sign!
I closed out my trades for a nice profit a couple of weeks ago at 88.56, and am now sitting on the sidelines waiting for a breakout. If prices break to the upside then I may open further trades depending on the strength of the move. A break to the downside may indicate a long term change in direction and I will have to look elswhere for carry trade profits.
My suggestion at the moment would be to close out any exisiting trades, and for those about to enter the market to wait and see for a confirming move in the charts.