- NZD/JPY has been bearish on the H4 chart.
- The price consolidates and is about to produce a bearish reversal.
- The H1 chart looks bearish.
- Intraday minor charts have been bearish.
NZD/JPY- Technical Analysis-H4 Chart
The chart shows that the price made a strong bearish move upon finding its resistance around 90.150. On its way, it made a bearish breakout at the SMA 30. It then had a bounce at 87.000 and produced two bullish candles. As of writing, the pair seems to produce a bearish reversal candle upon finding its resistance around 88.300. This is a pivotal level since the price reacted here earlier. The sellers may consider it as a flipped resistance, which may attract more sellers to go short from here. The price may find its next support around 86.400.
On the upside, buyers are to be patient to go long based on this chart. The chart is to produce a strong bullish reversal pattern or make a strong bullish move breaching some significant resistance. As things stand, it is going to take time.
Price Action Analysis-H1 Chart
The chart shows that the price has been heading towards the South by obeying a trend line. At the second rejection, it produced a bearish inside bar and made a strong move. However, it had a strong bounce at 87.000 as well. Since then the pair has been traded within 87.500- 88.400. Sellers may wait for the price to breach today’s lower low to go short. The pair may find its support around 87.000 again. Defensive traders may wait for the price to go at the trend line’s resistance and produce a bearish reversal pattern to sell the pair off.
On the upside, traders may consider going long above 88.400. However, buyers may consider trend line’s resistance before making any buying decision based on the H1 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn