NZD/JPY broke the inside bar candlestick pattern in today's London session which could lead the price lower in today's New York session. The price also broke below the previous low and printed a new one on the chart, which shows the sellers are coming into the market. The long term trend is still down as the short term moving averages (10 and 20 period) are still below the long term moving averages (50,100 and 200 period). Note that the Parabolic SAR indicator and MACD also support the move lower which adds fuel to the bears. The volatility also increased along with the breakdown of the inside bar candlestick pattern which is good for sellers. On the flip side, the Stochastic indicator is showing the price is oversold which may cause it to take a break before proceeding lower. With most of the indicators suggesting the price will continue the downside movement, we could potentially have great selling opportunities in today's New York session.
NZD/JPY broke the inside bar candlestick pattern in today's London session which could lead the price lower in today's New York session. The price also broke below the previous low and printed a new one on the chart, which shows the sellers are coming into the market. The long term trend is still down as the short term moving averages (10 and 20 period) are still below the long term moving averages (50,100 and 200 period). Note that the Parabolic SAR indicator and MACD also support the move lower which adds fuel to the bears. The volatility also increased along with the breakdown of the inside bar candlestick pattern which is good for sellers. On the flip side, the Stochastic indicator is showing the price is oversold which may cause it to take a break before proceeding lower. With most of the indicators suggesting the price will continue the downside movement, we could potentially have great selling opportunities in today's New York session.