Market NewsTechnical Analysis

NZD/JPY: The Bull Has an Edge; Do Not Rule Out the Bear

  • The pair has been choppy in the H4 chart
  • Trades around strong support where it had several bounces
  • The price had a bounce at yesterday’s low earlier in the H1 chart
  • The H1 chart favors the Bull
NZD/JPY H4 Chart
NZD/JPY H4 Chart

NZD/JPY H4 Has Been Choppy around Significant Support

The pair has been choppy in the H4 chart for a while. It had several bounces at 86.380. At the last bounce, it produced a bullish engulfing candle. However, the price closed below Simple Moving Average 30. As of writing, the pair has not created much bullish momentum. A bullish breakout above SMA 30 may attract buyers to go long and push the price towards the North.

On the downside, if the price makes a bearish breakout at 86.380, the sellers may keep their eyes to go short in the pair upon having breakout confirmation. The price may find its next support around 85.000.

NZD/JPY H1 Chart
NZD/JPY H1 Chart

Choppy Price Action but the Bull Has an Edge

The H1 chart shows that the price has not made a strong move towards any direction recently. However, it keeps finding its support around 86.380. At the last bounce, it had produced a Morning Star. It is a very strong bullish reversal pattern. Thus, intraday buyers may keep their eyes to go long on the pair. The price may find its next resistance at yesterday’s high 87.200. A breakout above that level may attract more buyers and push the price towards 87.750.

On the contrary, if the price takes a route towards the downside, the price may get bearish below 86.380. As they say “The longer it ranges; the stronger it breaks”. A bearish breakout may generate strong momentum and drive the price towards the South. The price may find its next support around 85.500.

Considering both charts, it is a pair that traders should keep their eyes on. The Bull seems to be ahead to make the next move. However, a bearish breakout at that significant support may change the whole scenario and make it bearish for a while.

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

Contact and follow Tareq on Twitter: @tareqfpn

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

A Closer Look at Trends in Global Stock Markets

Global indices like Nikkei 225, FTSE 100, and DAX 40 hit record...

Surging Markets: A Week of Record Highs and Key Risk Events Ahead

Last week's record highs in US stock markets driven by tech and...

AUD/USD in Focus: Resistance Levels and Inflation Data Awaited

The Aussie dollar faces resistance against the US dollar ahead of key...

USD/CHF: Choppy Price Action on the H4

USD/CHF – Technical Analysis- H4 Chart The chart shows that the price...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Global Stock Markets
Market News

A Closer Look at Trends in Global Stock Markets

Global indices like Nikkei 225, FTSE 100, and DAX 40 hit record highs but may consolidate amid economic uncertainties.

Surging Markets Week of Record Highs
Market News

Surging Markets: A Week of Record Highs and Key Risk Events Ahead

Last week's record highs in US stock markets driven by tech and AI stocks set a positive tone for investors.

Copyright © 2023 Forex Prop News. All Rights Reserved.