NZDJPY has been having a strong Buy trend on the H4 chart. The price has kept making higher highs. Today’s H4 candles have come out as corrective candles. The price is near a very significant level of Support at the moment. If the Support level is held and it produces an H4 Bullish Engulfing Candle as well as an H1 upward breakout, then buying the pair would get us some green pips later today. Let us have a look at the H4 NZDJPY chart.
NZDJPY Price Action Analysis – 18th July 2018
The level of 76.325 is the level, which has the potential to be a strong level of Support. If this level is held and we get an H4 Bullish Engulfing Candle right at the level, then an H1 breakout candle at the level of 76.800 would be the signal to take the long entry. Let us have a look at the summary of the trade…
- Buy Stop Order: 76.800
- Stop Loss: 76.325
- Take Profit: 77.560
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
There are two reasons that I have chosen this chart to take an entry today.
- The trend is strong Bullish.
- Yesterday, one of the H4 candles came out as an H4 Bullish Engulfing Candle and made new higher high.
Whenever a trend starts with an Engulfing Candle, it attracts traders to take entries on it. Yes, we still have to wait for another H4 Bullish Engulfing candle and the breakout though. If these two things take place today, there is a 90% chance that the price would make a new higher high today as well.
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