- NZD/JPY trades within a Pennant on the H4 chart.
- Simple Moving Average 30 has been flat.
- Intraday price action has been bearish in the Tokyo Session.
NZD/JPY-Technical Analysis-H4 chart
The pair has been choppy for a while on the H4 chart. The chart shows that it trades within a Pennant. Simple Moving Average 30 has been flat too. As things stand, the pair approaches to the point where it is to make a decision to find its next direction. Thus, traders may keep their eyes on the pair to see its next breakout and take decision based on that. A bullish breakout at the Pennant’s resistance may push the price towards the North. The price may find its next resistance around 88.000.
On the downside, if the price makes a bearish breakout at the Pennant’s support, the price may head towards the South and find its next support around 85.000.
Price Action Analysis- H1 Chart
The chart shows that the price found its horizontal support around 86.300 and made a bullish move. It had a rejection around 86.900 and headed towards the South. The price seems to have found its support at 86.900. It is a significant level since the price reacted at this level several times. The buyers may wait for the price to produce a bullish reversal pattern to go long on the pair. The price may find its next resistance around 87.025.
However, if the price breaches the level, it may continue its bearish move and find its next support around 86.300 again.
The H4 and the H1 both charts look choppy. Traders may consider buying the pair from support and selling them from the resistance. Risk-Reward ratio is to be reasonable, but it would not be as great as it is when a pair has an unyielding trend.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn