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

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