- 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 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.
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