Market NewsTechnical Analysis

NZD/JPY: Bear Waits for Its Ground to Continue Its Move

  • NZD/JPY has been bearish on the H4 chart having a bullish correction.
  • A broken support may work as a resistance.
  • The H1 chart has been obeying a bearish trend line.
  • Intraday minor charts have been bullish.
NZD/JPY H4 chart
NZD/JPY H4 chart

NZD/JPY- Technical Analysis- H4 chart

The chart shows that the price after producing a double top made a strong bearish move and breached the simple moving average 30’s support. It found its support at 89.030 and made a bullish correction. Upon finding its resistance around the SMA 30, it made another bearish move breaching the level of 89.030. As expected, the pair has been heading towards the broken level again. The sellers may wait for the chart to produce a bearish reversal signal to go short in the pair. The price may find its next support around 88.000.

If the price breaches the horizontal level, it may get sluggish. Since the SMA 30 has been working as a resistance, the buyers may not find opportunities with lucrative risk-reward.

NZD/JPY H1 chart
NZD/JPY H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the North with good momentum. However, a bearish trend line has been in play on the chart for a long time. Thus, the buyers may not be that sanguine to push the price towards the upside. The sellers on the other hand may keep their eyes at the significant level to produce bearish reversal patterns to go short in the pair.

Resistance on the trend line may provide the best risk-reward. However, the price may find its resistance earlier on the key horizontal resistance. The level of 89.030 or 89.200 look good to work as a resistance.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

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