Day four: our potential NZD/JPY trade

Another session of indecision has been seen in NZD/JPY, but looking at the technicals the trend is still lower and this frames my trading bias.

Following on from my potential trade idea yesterday, I have included a daily chart applying an ichimoku cloud; while this indicator may be foreign to many, it can be a very powerful indicator and good for those who follow trends. As things stand the Tenkan line (simply the sum of the 9-day period high and low, divided by two) seems to be holding up play and as long as the pair is below this level we should feel there are downside risks.

The bottom of the cloud comes in at 86.96, so this again validates my stop loss on the trade which is above here.

I continue to look for downside in the pair over a short to medium time frame.

IG Charts

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