NZD/JPY: Bear is on Its Way, Finds Strong Ground

• NZD/JPY has been bearish on the H4 chart.
• The pair produces a double top at the SMA 30’s resistance.
• The H1 chart looks bearish.
• Intraday minor charts have been bearish in Tokyo session.

NZD/JPY- Technical Analysis- H4 chart

The chart shows that the price has been heading towards the South after having its second rejection at the simple moving average 30’s resistance. It consolidated with two doji candles. Upon producing a bearish engulfing candle, it has assumed its bearish move again. The chart shows that it has enough space towards the South to move. Thus, the sellers may be keen to go short and drive the price towards the swing low. The price may find its next support around 88.180.

On the other hand, if the chart gets bullish and ends up making a breakout at the SMA 30’s resistance, the buyers may look to go long upon having breakout confirmation followed by bullish reversal at the value areas.

Price Action Analysis- H1 Chart

The chart shows that the price has been gradually heading towards the downside by obeying a trend line. The price reacted at 99.220 several times. Thus, the sellers may keep their eyes at this level as far as their trade management is concerned. A breakout below the level may generate more bearish momentum and drive the price towards the South further.

On the other hand, if the level works as a level of support and produces a bullish reversal pattern, the buyers may keep their eyes to go long above the trend line’s resistance.

As things stand with the pair, the buyers are to wait to find opportunities. However, the sellers may be on their toes to go short from the value areas.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News Contact and follow Tareq on Twitter: @tareqfpn