Dear Carry Traders,
NZDJPY pair started the week with a big gap down, and currently the price just filled up the gap.
Last week, I suggested to hold to buy this pair for Carry trades based on Daily chart.
The price has been rejected at 83.00 for a long time, and I see Stochastic Divergence. Thus I still believe the price will NOT make a higher high.
Perhaps we should wait until the Stochastic goes down, and cross up again. That may take a few days, or a week.
Below is H4 chart. The price didn’t make Higher High, but made Lower High, and someone may argue this will form a Head and Shoulder pattern.
Stochastic wants to go down for a while. (Scalpers may want to short this pair… But for Carry Traders, we only buy right?)
As a suggested Buy Zones, I would suggest to try from
a) 80.10 (MPP, WS1)
b) 79.30 (WS2)
c) 77.40 (MS1)
Anyway, it is not a great timing to buy this pair.
When the timing is good, I will post the setup again.
YJ Baik – Forex.Today @ Tokyo