The zones in NZD/JPY
The spot in the middle at 76.39 is where I would like to sell short.
If it does trigger that line I will be short the position in expectation of it going to 75 at least. Now, the reason why I like this trade is because my maximum risk is above 76, the 50-period simple moving average stands at 76.92 right now, and based on the the rate of decline it would seem that my choice of entry at 76.39 would be right where the buyers are starting to get exhausted.
The risk and reward is in a decent balance. For every unit of risk in yellow the reward is more than 2x that! There is reason to believe also that the Yen will start to pullback, it has been very strong against most other currency crosses and its only a matter of how it trades.......... the give and take
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