The NZD/JPY pair on the M30 timeframe presents a potential selling opportunity due to the presence of a well-defined bearish flag pattern. This pattern often indicates a continuation of a downtrend following a brief period of consolidation.
Key Points:
Sell Entry: Consider entering a short position (selling) around the current price of 90.85, positioned near the resistance line of the flag. This offers an entry point close to the perceived continuation of the downtrend.
Target Levels: Initial bearish targets lie at the following levels: 90.30: This represents the height of the flag, measured from the top trendline to the bottom trendline, projected downwards from the breakout point. 89.92: This is a further extension of the downside target, based on the height of the flagpole (the initial downtrend before the flag formation).
Stop-Loss: To manage risk, place a stop-loss order above the resistance line of the flag, ideally around 91.30. This helps limit potential losses if the price breaks above the flag pattern.