NZD/JPY: Bull’s Run Continues, a Strong Fence Ahead

• NZD/JPY has been heading towards the North.
• The pair trades above the simple moving average 30.
• It may find its horizontal resistance soon.
• The H1 chart looks good for the buyers.

NZD/JPY- Technical Analysis-H4 Chart

The H4 chart shows that the price has been heading towards the upside upon finding its support around 87.000. It produced a double bottom and made a significant bullish breakout at the SMA 30. The buyers were sanguine to push the price towards the North. However, the pair may find its next resistance around 90.200. A bullish breakout at that level may generate more bullish momentum and push the price towards the North further.

On the downside, if the chart produces a bearish reversal pattern at the horizontal resistance, the sellers may go short in the pair and drive the price towards the South. The price may find its support around 89.000.

Price Action Analysis- H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a bullish trend line. It has had multiple bounces at the trend line’s support. As of writing, the pair trades around the trend line. Thus, the buyers may keep their eyes on the pair to go long upon having bullish reversal candle. The price may make a new higher high. However, the buyers must consider the horizontal resistance 90.200 before making any buying decision.

Considering both charts, it seems that the Bull has been dominating in the pair. It may continue its domination if it breaches the horizontal resistance. Meanwhile, buyers on the minor time frames may look to go long to grab some pips. Traders on the H4 and H1 may wait for the price to consolidate and produce a bullish reversal to go long up to 90.200.

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

Contact and follow Tareq on Twitter: @tareqfpn