One of the keys to success is diligent research of the higher timeframes to know where key support and resistance levels are as well as where the researched pair is going in the week ahead. Just as fundamentalists would read earnings reports, listen to conference calls, or calculate P/E ratios to form a trading plan so do I with technical levels and Ichimoku rules.
The big mover this week (prior to and throughout the Fed moving the markets Wednesday) has been the New Zealand dollar. By the end of last week nearly all NZD pairs were playing around Weekly support/resistance levels. One pair in particular that has consistently revealed itself and its directions via the higher timeframes is the NZDJPY.
Saturday with the weekly bar close a hint was given to us about the direction of the NZDJPY. Weekly price action broke and closed solidly above the Weekly Kijun Sen level of 88.42.
At the start of the week NZDJPY consolidated on the swing trading timeframes until it touched the Kumo cloud on the 120 minute chart.
And in case we were not scanning charts to see all of this setting up we received a multi timeframe buy email alert on 9/16 at 5:00 AM EST
So with the higher timeframes telling us bullish, observing a midterm timeframe consolidation, and a multi timeframe buy alert we saw a profitable run on a breakout trade for 183 pips closed this morning: