350 PIPS NZD JPY-- SHORT-TERM RALLY, LONG-TERM DOWNTREND

This pair has finally come to the end of a very strong Uptrend that began in June of 2012, reaching its peak in March of this year. As with most trend changes that are about to take place, the market goes through a period of Consolidation in the form of a Range or a Pennant before breaking out in the new direction. As these patterns are being formed, however, they can also provide setups to trade between Resistance and Support. Such an opportunity may be seen in the next few days if the 2nd Support price point is formed. Once a strong enough Bullish Candle signal appears to also break the current Downtrend Line, a rally of 350 Pips will be on offer for the sharp Swing Trader.

Looking at the figure below, we can see the current sideways movement of the pair that followed the end of the Uptrend. The Inner Uptrend Line was broken and is now hovering above the Outer Uptrend Line, indicating an imminent trend change bearish.


DAILY CHART















The chart below shows us more closely the Pennant pattern gradually being formed above this Outer Uptrend Line. The Resistance boundary has already been formed but with only one Support price point so far, a rally back to Resistance would be needed to complete the Pennant.


DAILY CHART















Such a rally would need to be started with a strong enough Bullish Candle to justify trading the mini-uptrend. This can be similar to the two previous U-turns at the 1st Support point and the 2nd Resistance point.


DAILY CHART















After this rally takes place, we could see another downtrend back to Support. If a major trend change bearish is actually going to take place for the NZD JPY, the Support boundary and the Outer Uptrend Line will be broken simultaneously.


DAILY CHART















This setup to start a new downtrend would be similar to the one that occurred in April of 2013. The Inner Uptrend Line at the time was broken along with a small Range setup.


DAILY CHART




The breakout continued until the Outer Uptrend Line was hit to then continue the overall Uptrend. The major difference between this scenario and the one currently taking place, however, is the size of the Consolidation. The larger the Consolidation being formed after a very long trend, the greater the chance of a trend change. If this is accompanied by a break of an Inner Trend Line, this probability increases even more.

While this trend change looks likely to take place later this year, profitable gains can be had in the short-run. If the setups and trends that are formed inside the Pennant are strong and clear, a few hundred pips can be added to your trading account over the next few weeks.


RECENT EMAIL FROM CLIENT






____________________________________________________


SUBSCRIBE TODAY

____________________________________________________



Buy Now
US$120.00



Support independent publishing: Buy this e-book on Lulu.

Free 
 ___________________________________________


Duane Shepherd 
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
Contact: shepherdduane@gmail.com
Twitter: @WorldWide876
Facebook: DRFXTRADING 

Comments

Post a Comment

Popular posts from this blog

STRATEGY NOW UP BY 23.78% WITH RECENT 2.00% USD CHF TRADE

Image
This trade involved trading the False Breakout Reversal Setup that was taking place on the Daily and 4 Hour Charts last week, amidst the period of risk aversion across markets in reaction to the on going Coronavirus outbreak. This quick and aggressive trade took just 4 Hours in providing me with a 2.00% Rate of Return, just ahead of the Bullish Reversal that took place at Support. With this result, the new strategy is now up by 23.78% from just 14 trades, pushing me closer to the next major target of a 30% Rate of Return. As long as we carefully and patiently wait to only trade the setups with a High Probability of Success, large Rates of Return are possible for us in this difficult market.  VIDEO HIGHLIGHT OF THE USD CHF TRADE The main factors related to this trade that you'll seen in the Manual and in the more detailed Video Analysis available only to my subscribers were: 1. Accurately Identifying Consolidation...
Read more

SHARP GBP USD RALLY PREDICTED 7 DAYS AGO

Image
As predicted several days ago, the GBP has rallied sharply above major Support area of 1,2000 to start an uptrend that will take it up to the 1,2750 area by Wednesday January 25th, 2017. This is all part of the predicted  formation of a Consolidation Setup on the Daily Chart. In the screen shot of the Private Video Tutorials sent to DRFX Subscribers (www.drfxswingtrading.com), you can see the blue line used to indicate where I expected the rally. PRIVATE VIDEO LESSON - JANUARY 10, 2017 In the screenshot and Youtube Video below of January 18, you can see that the rally took the form of a strong Bull Candle - exactly where I predicted. PRIVATE VIDEO LESSON JANUARY 18, 2017 This projected Consolidation is based on the type of bullish and bearish waves on the Daily Chart. From the Trading Manual, you will see that there are certain types of waves that tell us when the market will form a Consolidation. ...
Read more

FOREX TRADING MANUAL & TRADING SERVICES

Image
The ability to accurately forecast and profit from the movements on the Forex Market is what you will enjoy with this  Trading Manual and Swing Trading Services . DRFX FOREX SWING TRADING With this Manual, you will learn the Techniques based on Candlestick Patterns that determine market direction every day. You'll be able to apply this knowledge to your Swing, Day Trading or Scalping strategies for Maximum Returns every week, as you trade your way to Long-Term Wealth . PREDICTING MARKET DIRECTION & PATTERNS There are times when you may be trading what appears to be an Uptrend on the 30 Minute Chart only to realize that this was part of a temporary reversal on the Daily Chart leading to unexpected losses. These problems are easily solved with the  Manual  as you’ll discover the main  Technical Factors  of the Daily and 4 Hour Charts that allow you to accurately...
Read more