Today’s NZD/JPY chart follow’s on from yesterday’s look at EUR/JPY, with both pairs poised precariously at resistance.
Using the Correlation Matrix in the Vantage FX MT4 SmartTrader Tools Package to take a look at how the pairs move in relation to one another, you can see that the two bring up a high correlation reading.
Both charts side by side look fairly similar, with price sitting at a confluence of trend line resistance as well as a horizontal support/resistance zone.
Zooming into the NZD/JPY chart on its own, you can see that price is still sitting right on resistance while EUR/JPY got the beginnings of a potential rejection yesterday.
If you took yesterday’s EUR/JPY short and have some floating profit, the opportunity to now take a correlated NZD/JPY short could be there.
Do you see opportunity trading Forex correlations? LAST CHANCE to trade with Vantage FX and win an Apple iWatch!
Dane Williams – @VantageFX
Trade the setup on your own Forex Demo Account.
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX does not contain a record of our prices or solicitation to trade. All opinions, news, research, prices or other information is provided as general news and Forex education material – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness, Australian Forex Broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.