NZD/JPY pair is in an downtrend but it made a deep bullish correction … This pullback seems to be part of wave A.
We will review different wave scenarios as the pair can either continue the bullish corrective pullback or bounce for a new bearish momentum and start wave B.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support and resistance, and SWAT software.
As seen in the below chart, the pair is moving in a strong downtrend and has made a deep correction as part of wave A… The pair is now can be in a bouncing spot which can be the end of the bullish momentum of wave A and the start of the new bearish momentum of wave B … Here are the main conclusions:
So I expect that the pair have an appointment with the bearish momentum of wave B but still need developments to trade this pair.
Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart indicates a bullish momentum and needs some developments to confirm the bearish wave… Here are the main developments to consider:
So in my view, traders should wait for the confirmation before trading this pair.