- NZD/JPY is traded around a horizontal resistance.
- The pair trades below the simple moving average 30.
- The H1 chart seems to have found its resistance and may get bearish.
- Intraday minor charts have been choppy.
NZD/JPY- Technical Analysis- H4 chart
The chart shows that the price made a bullish move upon finding its support around 89.140. However, it has found its resistance again at 89.860. It had a rejection at the same level earlier. Moreover, the level has been working as a flipped resistance as well. Thus, traders are going to keep their eyes on the price action around this level. A bearish reversal pattern may drive the price towards the South. The price may find its support around 88.500.
On the contrary, if the price beaches the horizontal resistance, it may end up making a breakout at the SMA 30 as well. Thus, buyers may wait for the chart to confirm the breakout followed by a bullish reversal pattern to go long in the pair. In that case, the pair may find its resistance around 90.500.
Price Action Analysis- H1 Chart
The H1 chart shows that the price has been gradually moving towards the North by obeying a trend line. As we have seen on the H4 chart, the same level may work as a resistance on the H1 chart as well. The chart produced a bearish Marubozu candle and made a bearish move. However, the price seems to have found its support again at the trend line’s support. A breakout may generate bearish momentum and drive the price towards the South. The price may find its next support around 89.150.
On the contrary, if the price breaches the horizontal resistance, it may head towards the North and find its resistance around 90.120.
Considering both charts, it seems that the bear is slightly ahead here. Traders are to keep their eyes on the price action around those key levels of support and resistance before making trading decision.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn