Short-Term NZD/JPY Buy Near 60.80

Last updated 2/8/2010 1:52 PM EST (GMT -5) 7 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

We have a potential short-term NZD/JPY buying opportunity at 60.83 based on an emerging 30min bullish Gartley pattern. Projected pattern completion (point D) increases the odds of a temporary bullish correction based on the following Fibonacci support convergence...

·  78.6% of XA

·  161.8% OF BC

·  AB=CD

The key will be for prices to dip to our projected entry at 60.83 without first closing above point C (61.63) which negates pattern structure invalidating this particular setup. Additionally, any gaps and/or wide-ranging candles (2-3x's average) prior to the projected entry (even if the high at point C holds) may invalidate this trade as they are signs that a continuation move may be in progress.

The initial profit target of 61.45 (T1) represents 78.6% of the projected CD leg and 61.8% of AD. The initial stop-loss of 60.53 will be moved to break-even (b/e) once prices reach 61.09. If we're stopped out before reaching b/e, a potentially strong bearish continuation may be in progress down to 127.2%-161.8% extensions of XA near 60.00 and 59.50, respectively.

Potential strategy: Buy if prices dip to 60.83 with stop-loss at 60.53 targeting 61.45 (stops to b/e at 61.09).

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Comments (7)

margaret

February 08, 2010 at 07:48 PM ET

At the risk of tempting providence - but so far so good! This is shaping up to be one very cool trade. It hit the spot bang on target and half way toward T1. How do you do it!

margaret

February 09, 2010 at 02:58 AM ET

Well Roger that was excellent - thank you very much:)

rstojsic

February 09, 2010 at 09:51 AM ET

thanks!

FXLrn

February 09, 2010 at 01:14 PM ET

HI Roger, newby in FX as well as to this site, please include me to your emaill list if there is any ? thanks in advance

rstojsic

February 09, 2010 at 01:15 PM ET

look to your right :)

rstojsic

February 09, 2010 at 01:17 PM ET

(there is a sign-up form to the right of your post)

FXLrn

February 09, 2010 at 05:35 PM ET

Sorry to bother but I don't see anything else other than Reply, please advise. THANKS

If this where I have to request then my email is skuma03x@gmail.com, please include me in your list

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