the NZD/JPY in a Decision Zone and waiting for the completion of wave 4 and the start of wave 5.
This article analyses the wave patterns, key trend lines, and SWAT software on the NZD/JPY charts.
NZD/JPY pair has recently started a bullish correction and is currently building an ABC pattern within wave 4.
I think that the currency pair is now in wave C of wave 4 but I prefer trading the pair after wave 4 is completed. Basically, I’m looking for the start of wave 5… here are the main points to take into consideration:
Now it’s time to use the SWAT charts to pinpoint potential trade setups within the expected wave structure and patterns.
As you see in the below chart, the price is wobbling and moving correctively for the past 2 trading days… it’s making small up and down moves, which is exactly the reason why I do not like these kind of charts: they have no clear direction .
The SWAT charts are indicating a similar bearish chart but some developments are still required:
Once again, we are looking to trade the bearish move of wave 5 only.
And for the target? Well we all know that wave 5 should at or end beyond wave 3, thus our main target is 74.40 at -27.2 Fibonacci level.