NZDJPY Forecast Follow Up And Update

Hi Traders! NZDJPY forecast follow up and update is here. On September 10th I shared this Technical Analysis – NZDJPY Short Term Forecast post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!

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Now let’s summarize the idea first:

On the daily chart, the price has bounced from the top of the range. On the H4 chart based on the Parabolic Sar the dots are above the price which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. Also based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. Currently, it looks like a pullback is happening, once this pullback completes itself we may then expect the price to continue lower further.

NZDJPY H4(4 Hours) Chart Current Scenario

Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to move lower further after pullbacks. The price action followed my analysis and the pullback that I was looking for happened. The price moved higher and reached a resistance zone, respected it, and then it moved lower exactly as I expected it to, delivering around 120 pips move so far.

So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bearish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.

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To your success,

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club