Post-trade analysis: NZDJPY (long)
Our long trade on NZDJPY proceeded rather speedily to the target zone of 63.52-63.57 today. As with most C waves within an inverted flat correction, this was a ragged, choppy advance capped off with a sharp rally.
Price is likely to continue to rally higher in the Fibonacci retracement zone, with a likely termination point in the 63.67-63.85 range. Price should then fall precipitously in Wave 3 of a larger impulse (or alternatively, Wave C of a larger correction).
Total elapsed time on this trade was roughly 11 hours, thus producing an average rate of return of around 4.5 pips/hour. We were fortunate to get in and out of this trade quickly as the general trend in this pair seems to have shifted in favor of the bears and thus today’s trade took place within in a countertrend move.
saigonfx 