PaxForex Support Posted December 6, 2012 Report Posted December 6, 2012 NZDJPY Forms Top The NZDJPY has rallied alongside its bullish price channel as visible in this H4 chart. The pair currently tries to form a top as the last couple candlestick patterns formed hammer as well as inverted hammer formations. We expect this pair to correct to its rising support line. MACD has formed a negative divergence and shows that momentum has faded away. RSI has formed a negative divergence as well and reached extreme overbought territory. We expect RSI to breakdown which will fuel the correction. We recommend taking a short position at 68.40. We do not see any further upside potential for this pair and therefore do not recommend a second entry level. Traders who wish to exit this trade at a loss are advised to place their stop loss level at 69.20. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 67.85.
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