The NZDJPY has sold-off nicely and everyone who was short in this currency pair, congratulations on some deserved pips. I think we will see a volatile period ahead of us where this currency pair will try to carve out some solid support before we will witness a sharp reversal.

I am positioning myself for a short-covering rally as I do think the sell-off was overstretched and left the NZDJPY in extreme oversold territory. We could see some choppy, sideways action before forex traders will realize floating trading profits.