💱NZDJPY - Symmetrical triangle in reversal set-up

24 Jul 2023

NZDJPY is forming a symmetrical triangle on the background that D1 is in the phase of forming a head and shoulders reversal set-up.

TA on the high timeframe:
1) A head and shoulders is forming against support at 87.140 and resistance at 88.56. A strong enough pattern for a market reversal.
2) But! Consolidation is forming, which may send the price to 89.00

TA on the low timeframe:
1) A symmetrical triangle has been forming for the past two weeks.
2) The price cannot approach the support retest, because the liquidity at the bottom does not allow it.
3) The price is heading for the resistance retest. Two scenarios are possible.
4) The price can break through the resistance and form an impulse. Or a false breakout will be formed, consolidation below the resistance will give an entry point

Key support: 86.700
Key resistance: 87.888