Potential long setup on NZDJPY

15 Jan 2021

NZDJPY

Potential long setup on NZDJPY next week. Price has fallen to an area of support and produced a candle with a very large lower wick showing some buying pressure after a bearish few days. We have a few things converging to this area including the black reaction line projected forward. I've drawn an upsloping blue pitchfork from the hypothetical C pivot and you can see the median line catching price at least 4 times, twice as support and twice as resistance, suggesting that this pitchfork might catch price nicely.

I'll look to go long after more signs of reversal, such as candle stick formations etc. with a stop just below pivot 2 and a target of at least the supply zone marked, which should give a nice RRR of 4 or more.