Short on NZDJPY full analysisIt's much simpler than it looks...
1. The ascending channel (left) has broken downward.
2. The price went back up in an ascending channel, and tested the breakout.
3. A sharp downward breakout, with an Engulfing candle, creating a descending channel.
The target according to this candle is at 88.923
4. Another Engulfing candle, rising this time from the bottom of the channel, and its target - at the top of the green triangle 90.445
The upper point combines between:
(a) A significant price point (I marked it long before the move happened)
(b) Pullback to 0.786 Fibonacci, which is an excellent correction to the red Engelping candle.
(c) The upper border of the descending channel.
If indeed at the upper point, conditions will be created for shorting - this seems to be an excellent point with a good risk versus profit range.
It is important to note - it is not necessary for the price to rise again to that point, the conditions are more suitable for the short.
90.334 is an important resistance point on the way up.
89.372 is an important support point on the way down.
