The 4 Steps for NZD/JPY SHORT SetupNZD/JPYOANDA:NZDJPYlubosiNZD/JPY Short Setup – Short Squeeze Mindset in Action 💹🐻 NZD/JPY has been a favorite among currency traders for its volatility and clean technical moves. But just like any fast-moving pair, it often tricks traders into chasing rallies at the wrong time. What looks like strength can quickly unravel into weakness, leaving late buyers trapped. This is where the Short Squeeze Mindset comes into play. Today, I’ll walk you through how the mindset gave me a SHORT signal on NZD/JPY and how you can apply the same structured approach. What Is the Short Squeeze Mindset? The short squeeze mindset isn’t just for stocks — it works across currencies, commodities, and indices too. The idea is simple: On higher timeframes (daily chart), you look for the dominant trend. On lower timeframes (like the 4H chart), you spot pullbacks or false moves that trap traders in the wrong direction. Once momentum flips back in favor of the higher timeframe, those trapped traders are forced out, fueling the move. In NZD/JPY, that’s exactly what’s happening now. What NZD/JPY Is Showing Us Now 📉 Daily Chart: NZD/JPY has printed a red bar 🟥, signaling sellers are regaining control. 4H Chart: At the same time, the chart shows a green bar 🟩, which tempts traders into buying the dip. Result: Longs think they’re entering a safe rebound, but in reality, they’re walking straight into a trap. The mismatch between daily red and 4H green is the exact setup the short squeeze mindset thrives on. The 4 Steps for NZD/JPY SHORT Setup Here’s the structured breakdown: 1️⃣ Rocket Booster Strategy Start with the big picture. On the daily timeframe, NZD/JPY has lost upside momentum and is showing bearish continuation signs. The rocket fuel is now on the side of the bears. 2️⃣ Momentum Trading Style Momentum across JPY pairs is shifting as safe-haven flows support the yen. This aligns with broader market conditions, where risk-off sentiment often pressures currencies like NZD. 3️⃣ Short Squeeze Mindset This is the trap setup: Daily = 🟥 Red (trend down) 4H = 🟩 Green (false bounce) Traders piling into the 4H green bar are betting on a rebound, but they’re trading against the dominant daily downtrend. Once the 4H flips back down, their stop-losses will fuel the bearish move. 4️⃣ Stochastic Overbought Zone Even if stochastic looks “overbought” on the 4H bounce, it’s not a buy signal — it’s a red flag. In downtrends, overbought often signals exhaustion of the bounce, giving shorts the green light. How To Trade This NZD/JPY Setup 🔑 Here’s a practical approach: Daily Confirmation Red bar 🟥 = bearish bias confirmed. 4H Pullback Trap Green bar 🟩 lures longs into the market. This is the setup zone for shorts. Entry Trigger Wait for a bearish candlestick reversal on the 4H chart: Bearish engulfing Evening star Shooting star Enter after confirmation, not before. Profit Targets & Risk Take Profit 1 (TP1): 86.50 (recent support) Take Profit 2 (TP2): 85.20 (major demand zone) Stop-Loss (SL): Above the recent 4H swing high What This Means 🌍 This NZD/JPY setup shows how the short squeeze mindset keeps you one step ahead of the crowd. Instead of buying into a weak bounce, you recognize the trap, align with the higher timeframe, and let the trapped longs provide momentum for your trade. It means: You’re trading with the daily trend, not against it. You’re fading false strength at the perfect moment. You’re converting volatility into opportunity. That’s the discipline behind the short squeeze mindset. Final Thoughts NZD/JPY is setting up for a SHORT based on the Short Squeeze Mindset. By combining the daily bearish red bar with the 4H pullback trap, you position yourself ahead of the downside move — not after it. This is the kind of trade you want in your playbook: structured, repeatable, and rooted in both technicals and psychology. 🚀 Add this setup to your trading journal. ⚠️ Disclaimer: This article is for educational purposes only. Trading is risky. Always use risk management and test strategies on a demo account before trading with real money.