Long-Term Forex Correction for NZD/JPY?

Since I haven’t had much luck with my recent forex trade ideas on a dollar pair and a comdoll cross, I’m looking at the yen pair this time. Here’s what I spotted on NZD/JPY:

NZD/JPY Daily Forex Chart

NZD/JPY Daily Forex Chart

On its daily time frame, it can be seen that the pair is still in the middle of a huge forex correction after trading near the 94.00 major psychological resistance. Price could retreat to the broken resistance around 89.00, which is close to the 50% Fibonacci retracement level, before resuming its long-term climb.

Stochastic is still moving down for now, indicating that Kiwi bears have enough energy to push the pair down to the Fib levels. I’ll be waiting for reversal candlesticks around the 38.2%-50% levels and for stochastic to cross up from the oversold region before going long.

In terms of fundamentals, I think that the economic events in New Zealand this week could provide more volatility for this pair. The uptrend could stay intact if the reports turn out bullish for the Kiwi or if risk appetite picks up towards the end of the year.

What do you think of this swing setup of mine?

Cheers,

Happy time

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