- NZD/JPY has been heading towards the North with good momentum.
- The pair is traded around the Simple Moving Average 30’s resistance.
- The H1 chart looks very bullish breaching a bearish trend line.
- Intraday minor charts have been bullish.
NZD/JPY- Technical Analysis- H4 chart
The chart shows that the price consolidated around 90.000 zone and produced a bullish engulfing candle. The candle closed within the resistance of the simple moving average 30. As of writing, the current candle seems to be breaching the resistance of that SMA. If that happens, the pair may continue its bullish move and head towards the last swing high.
On the contrary, if the chart finds its resistance around SMA 30 and produces a bearish reversal pattern, the sellers may go short in the pair and drive the price towards the South. The price may find its support around 89.300.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the North with a strong bullish momentum. It produced a double bottom and made a breakout at the neckline. On its way, it has made a breakout at the trend line’s resistance. As of writing, the pair trades above the resistance. The buyers may wait for the chart to consolidate and produce the bullish reversal signal to go long in the pair from the value areas. The price may find its next resistance around 91.400.
On the downside, it does not look good for the sellers. Until, the pair produces a strong bearish reversal pattern or makes a strong bearish move, the sellers may skip making any trading decision based on this chart.
Considering both charts, it seems that the bull is going to dominate in the pair for a while.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn