Market NewsTechnical Analysis

NZD/JPY: Is It Going to Make a Bearish Breakout?

USD/JPY Nikkei Holds Strong
  • NZD/JPY gets trapped within a horizontal channel.
  • The price had a rejection at the channel’s resistance.
  • The H1 chart looks bearish heading towards yesterday’s low.
  • Intraday minor charts have been bearish.
NZD/JPY H4 Chart
NZD/JPY H4 Chart

NZD/JPY- Technical Analysis- H4 Chart

The chart shows that the price has been roaming around within 90.600 to 89.880. It has had a rejection at the resistance and produced a bearish inside bar. As of writing, the current candle has been bearish as well. The sellers will be waiting for the chart to make a breakout at 89.880 to go short in the pair. In case of a bearish breakout, the price may find its support around 89.000.

On the contrary, if the level holds the price as a support again and produces a bullish reversal pattern, it may head towards the resistance. A bullish breakout at 90.600 may generate more bullish momentum and push the price towards the upside. The price may find its resistance around 91.470.

NZD/JPY H1 Chart
NZD/JPY H1 Chart

Price Action Analysis- H1 Chart

According to the chart, the price upon finding its resistance at 90.600, has been heading towards the South. It had a bounce at 89.700, so the sellers may consider the level in their trade management. Buyers will be waiting for the chart to produce a bullish reversal pattern to go long in the pair from that zone. Nevertheless, the sellers may look for a bearish breakout at 89.760 to go short and drive the price towards the downside further. As of writing, the chart offers enough space for the sellers. Thus, they may wait for the price to consolidate and produce a bearish reversal signal at the value areas to catch some pips.

A bearish breakout may drive the price towards 89.350. Since the price has been choppy for a while. Thus, a breakout may make the pair move with good momentum.

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

Contact and follow Tareq on Twitter: @tareqfpn

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