Right now I’m seeing a bearish trend on the NZD/JPY. So far, it has retraced just passed the .382 and has broken the B high. This usually means a deeper retracement could soon follow, in this case, closer to the .618 or deeper.
With this information, I’ve set an alert for a counter trendline break (for me, a great place to enter the market as a point of confluence) to place a sell. If the market retraces deeper, I will set another alert and have 2 sell positions set. This allows me to walk away from this trade and check in later to see if the trade has been entered or if another opportunity presents itself.
Another thing to think about is we are in the Dead Zone of trading hours, but his pair could start to move as early as >5:00 PM this evening. This could push the market in either direction. The spread can be a little wide on NZD pairs, but if I have the equity to hold a position with a larger spread, this could be a good opportunity to make a quick market during a less volatile time.