{"id":56637,"date":"2014-08-14T09:37:35","date_gmt":"2014-08-14T13:37:35","guid":{"rendered":"http:\/\/countingpips.com\/?p=56637"},"modified":"2014-08-14T12:46:53","modified_gmt":"2014-08-14T16:46:53","slug":"trading-the-waves-and-pivots-on-nzdjpy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/trading-the-waves-and-pivots-on-nzdjpy\/","title":{"rendered":"Trading the Waves and Pivots on NZD\/JPY"},"content":{"rendered":"<div id=\"inves-960123656\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 14, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <strong>Bullish<\/strong><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>NZD adopts a bullish bias following strong Retail Sales, Core Retail Sales and Business NZ Manufacturing Index report;<\/li>\n<li>JPY is increasingly weak after a GDP contraction in the 2<sup>nd<\/sup> quarter and decreasing Core Machinery Orders.<\/li>\n<li>NZD\/JPY bottomed at 85.75, offering multiple bullish signals this week.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>Having confirmed the\u00a0bullish bounce, NZD\/JPY is about to focus on several key price pivot levels in the coming days and weeks.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/NZDJPY-14th-August.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5688\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/NZDJPY-14th-August.png\" alt=\"NZDJPY 14th August\" width=\"700\" height=\"342\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">On Friday, 8<sup>th<\/sup> August, NZD\/JPY sold-off down to a major support level (85.75) and rapidly bounced higher afterwards. This recovery nearly formed a bullish Pin Bar, yet the daily close below the 200-Day Simple Moving Average failed to entice buyers further. Several days later the technical landscape is increasingly unambiguous, due to multiple bullish confirmations:<\/p>\n<p style=\"text-align: justify;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Pair rallied above the resistance trendline and a small pivot zone at 86.70;<\/p><div id=\"inves-3507472370\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p style=\"text-align: justify;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Price is now steady above the 200-Day Simple Moving Average;<\/p>\n<p style=\"text-align: justify;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rejection off 85.75 confirms the boundaries of a 5-month range pattern, indicating a strong appeal to re-test immediate resistance levels.<\/p>\n<p style=\"text-align: justify;\">Because the sell-off from 89.68 happened in three bearish waves, respecting the rules of an Elliot Wave bearish cycle, we expect a minimum of two bullish corrective rallies in the coming days and weeks. These rallies should intertwine closely with the main pivot zones within the range \u2013 an observation based on NZD\/JPY respecting all major horizontal S\/R levels as of late.<\/p>\n<p style=\"text-align: justify;\">Price is currently around 87.06, forging the first bullish wave, with a main target around 87.40\/55. Stochastic is exiting oversold territory on the daily time frame, confirming the bottom and along with it the bullish scenario as well.\u00a0 A retracement is expected around 87.40\/55, down to 87.00 or even 86.53 (200-Day SMA), before the second bullish wave comes into play with targets extending as high as 88.00 \/ 88.25.<\/p>\n<p style=\"text-align: justify;\">A daily close below the 200-Day Simple Moving Average, currently priced at 86.53, will invalidate this bullish scenario completely.<\/p>\n<p>*********<br \/>\nPrepared by Alex Z., Chief Currency Strategist at <a href=\"http:\/\/www.capitaltrustmarkets.com\/\">Capital Trust Markets<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment: Bullish Key Takeaways NZD adopts a bullish bias following strong Retail Sales, Core Retail Sales and Business NZ Manufacturing Index report; JPY is increasingly weak after a GDP contraction in the 2nd quarter and decreasing Core Machinery Orders. NZD\/JPY bottomed at 85.75, offering multiple bullish signals this week. Having confirmed the\u00a0bullish bounce, NZD\/JPY [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-56637","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/56637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=56637"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/56637\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=56637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=56637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=56637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}