Immediately after we closed our swing long in Tuesday previous week, NZDJPY retraced exactly 38%. – NZDJPY: Swing Trade – Took Profits!
NZDJPY 4H Chart – April 24, 2016
That retracement was the first sign toward a bigger A-B-C move down targeting 50%-60% retracement levels. We consider it wave A (yellow one in the chart). The second sign for our scenario is the current a-b-c move noted as the yellow B in the chart. We expect earlier this week a move down near wave A and a completion of the entire A-B-C at the end of the week.
We will position short at these levels with a stop-loss above the previous high ($77.25). Our 2 main targets are: Target 1: $75 and Target 2: $74.50.