Firstly I would like to wish everyone a healthy and prosperous 2018
I spent the last 5 days walking (and falling over) up in the mountains on the Tibetan plateau and have returned reinvigorated, refreshed with my Chi fully charged .- The reality is, I’m feeling exhausted and sporting a gash to the head after hitting my bonce on the ceiling of a cave. Maybe it will leave a cool scar and make me look really bad-ass 🙂
On to business and the short trade i highlighted last week in NZDJPY. I have updated the H4 chart below and zoomed out to show my strategy. The red arrow shows my entry and we are beginning to see a little weakness creeping in from yesterday.
The major trendline (red) has been retested and rejected once again. We can also see a slanting head and shoulders pattern. I can now place my stop-loss at the highs of the move and have the option to add to the trade on further weakness.
Price needs to breach the 79.00 area for this move to really take hold.- Below the 50% fib of the Sept high-Nov lows and the 61.8% of the larger swing back in July marked by the blue area…Obviously a move back above the highs here within the green channel and my trade is busted, I wont be standing in the way trying to re-sell as I would consider that a bullish sign .
My entry and chart from last week below …..
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