- NZD/JPY made a strong bullish move on the H4 chart.
- The pair trades way above the simple moving average 30.
- The H1 chart looks bullish may consolidate later today.
- Intraday minor charts have been bullish in Tokyo session.
NZD/JPY- Technical Analysis- H4 chart
The chart shows that the pair found its support around 88.800 and produced a bullish engulfing candle. Since then, it has been bullish. On its way, it made a significant breakout at 89.720. As of writing, the pair trades well above the simple moving average and the breakout level. The buyers may look to go long from the value areas. Based on this chart, traders may need to wait for the price to consolidate and find its support to go long and push the price towards the North.
The sellers, on the other hand, must wait and stay away to take short entries. As things stand with the pair, it may not produce short entries on this chart with lucrative risk-reward.
Price Action Analysis- H1 Chart
The chart shows that the price moved towards the North in a hurry. It found its resistance around 90.390 and consolidated for a while. At the end, it made a bullish breakout. As of writing, the price still seems to be bullish. The buyers may keep their eyes on 90.390. If the chart produces a bullish reversal at that level, the buyers may push the price towards 92.115.
The H1 chart suggests that the sellers may not find short opportunities with good risk-reward. Unless, it produces a double top or a strong bearish momentum, the sellers should wait and be patient with the pair.
Considering both charts, it seems that the bull has been dominating on the pair. It may get sluggish or consolidate since it has been over bought on some charts. However, overall, it is the buyers who should keep their eyes on the pair to make trading decisions.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn