- NZDJPY signals near-term reversal off July high
- Scalps look to sell rallies
- Event Risk on tap next week from New Zealand & Japan
NZDJPY Daily Chart
[img class=gsstx src=https://media.dailyfx.com/illustrations/2014/07/16/Forex-NZDJPY-Reversal-Undeway--Scalps-Target-Key-Support-at-88.20_body_Picture_2.png]Chart Created Using
FXCM Marketscope 2.0Technical Outlook
- NZDJPY weekly & monthly opening ranges break- bearish
- Interim support 88.20/33- Break targets objectives at Aug TL support, 2012 TL support, 8730
- Resistance at 88.67, 89.45/50, 89.91- bearish invalidation
- Daily RSI support trigger break on building divergence in price- bearish
- Event Risk Ahead:RBNZ rate decision, Trade Balance & Japan Trade Balance next week (7/23)
NZDJPY 30min Chart
[img class=gsstx src=https://media.dailyfx.com/illustrations/2014/07/16/Forex-NZDJPY-Reversal-Undeway--Scalps-Target-Key-Support-at-88.20_body_Picture_1.png]Notes: A break of the weekly opening range low yesterday shifted the bias to the short-side of
NZDUSDwith the resulting sell-off now pressing below the July opening range low a t 88.67. The pair rebounded off of near-term support today at 88.20/34 and shorts into this region should be treated with caution until the break.Bottom line: look to sell rallies while below 89.15 (weekly ORL/61.8% retracement) with a break below 88.20 targeting subsequent support targets into 87.30. A breach above 89.15 puts us neutral with only a breach above 89.55 shifting our focus back to the 2014 high at 89.90 and beyond.Caution is warranted as we head into event risk next week with the RBNZ rate decision and trade balance coming out on the on the same day as the Japanese trade balance figures. Follow the progress of this trade setup and more throughout the trading week with
DailyFX on Demand.* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the
opening ranges on a session & hourly basis offering further clarity on intra-day biases.Key Threshold Grid
| Entry/Exit Targets | Timeframe | Level | Technical Relevance |
| Resistance Target 1 | Daily / 30min | 88.65/67 | 23.6% Retracement / July ORL |
| Resistance Target 2 | 30min | 88.84 | 38.2% Retracement |
| Resistance Target 3 | 30min | 89.00 | 50% Retracement |
| Bearish Invalidation | 30min | 89.15 | Weekly ORL / 61.8% Retracement |
| Break Target 1 | 30min | 89.38 | 78.6% Retracement |
| Break Target 2 | Daily / 30min | 89.55/66 | Weekly ORH / July High |
| Break Target 5 | Daily | 89.90 | 2014 High |
| | | |
| Bullish Invalidation | Daily / 30min | 88.20/34 | 1.732 Ext / Wkly Low / 38.2% Retrace / June Pivot |
| Break Target 1 | 30min | 88.00 | 50DMA / ~ August TL Support |
| Break Target 2 | 30min | 87.75 | 50% Retracement |
| Break Target 3 | Daily / 30min | 87.30 | 61.8% Retracement / April Lows |
| Break Target 3 | 30min | 86.66 | 78.6% Retracement / ~ 2012 TL Support |
| Break Target 4 | Daily / 30min | 86.28/29 | 78.6% & 88.6% Retracement(s) |
| | | |
| Average True Range | Daily (20) | 51 | Profit Targets 13-16pips |
| | | |
*ORH: Opening Range High*ORL: Opening Range LowOther Setups in Play:
---Written by Michael Boutros, Currency Strategist with DailyFXFor updates on this scalp and more setups follow him on Twitter
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