- NZD/JPY has found its horizontal support on the H4 chart and headed towards the North.
- The pair trades above the simple moving average 30.
- The H1 chart is having a bullish correction.
- Intraday minor charts have been choppy.
NZD/JPY- Technical Analysis-H4 Chart
The chart shows that the price had multiple bounces at 86.850. At the last bounce, it produced a bullish inside bar. Then, it made a strong bullish move. On its way, it made a significant bullish breakout at 87.810 and traded above the level for a while. The price then consolidated around that breakout level. As of writing, the pair produced its last H4 candle as a hammer. Thus, the buyers may be keen to go long in the pair and push the price towards the North again. The price may find its resistance around 88.250.
A breakout at 88.250 may generate more bullish pressure and push the price towards the North further.
On the contrary, the sellers may have to wait for the chart to produce a strong bearish reversal pattern followed by breaching the SMA 30’s support. As things stand, it may take time to happen.
Price Action Analysis- H1 Chart
The H1 chart looks good for the sellers. The pair after being very bullish made a bearish correction and found its support at 87.880. Upon producing a bullish reversal candle, it made another bullish move by making a new higher high. The chart then produced a huge bearish engulfing candle and consequently, the chart made a bearish breakout at the last support. The sellers may wait for the price to produce a bearish reversal pattern at the flipped resistance to go short. As of writing, the pair trades around that level. A bearish reversal pattern may drive the price towards 87.000.
On the contrary, if the price continues to go towards the North by breaching the resistance, the buyers may push the price towards the last swing high.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn