NZD/JPY: Last Leg Down To Achieve 75.300
Good evening, hope you've been enjoying all the content from today!
It's been a pretty interesting day with price bracing itself rather early on in the week to provide potential setups. The Yen is currently having a retracement following Friday's collapse.
NJ's monthly price action remains squeezed between its monthly moving averages. Unable to determine a clear break to either side, will it be able to provide a clearer indication as to which direction it would like to continue before month close this week?
Last week we saw somewhat of a shooting star which was able to engulf the majority of the prior week's candle. As mentioned earlier, the retracement in response to last Friday's fall is more apparent on the daily timeframe where we have pierced into a key daily resistance level as well as daily moving averages.
What is forming to be a wick rejection is more meaningful as we take a look at price action on H4. We can see a retest of the underside of last weeks consolidation zone. As well as that, we could potentially have a 3rd rejection of a descending trendline which if comes into fruition adds further confluence for a downside continuation. Should price sustain below the highlighted range and follow through, an expected take profit region could be 75.300 which layers well with the 3rd touch of the plotted weekly trendline.