The Setup
NZD/JPY produced two bullish daily candles on the daily chart. Friday’s candle closed within a level, which has been a strong level of resistance on the daily chart. The H1 chart shows that the price is about to make a vital breakout. If the chart produces a bearish reversal candle at pullback after the breakout, the sellers may get an opportunity to go short in the pair.
Chart 1 NZD/JPY H1 Chart
The chart shows that the price consolidated around 65.800 for a while before making the bearish move. The price reacted at the level of 65.345 several times. The pair produced three bearish candles consecutively. As of writing, the pair is trading below the level. If the price goes back to the level and produces a bearish reversal candle, the sellers may trigger a short entry.
Main Technical Levels
Entry: Sell below 65.255
Stop Loss: Above 65.345
Take Profit 1: 64.985
Take Profit 2: 64.900
Take Profit 3: 64.750