Market NewsTechnical Analysis

NZD/JPY: Wait for a Breakout to Find Its Next Route

  • NZD/JPY is at a critical point to find its next route.
  • Buyers are to wait for the price to be held by the SMA30.
  • The H1 chart looks bearish.
  • Intraday charts have been bearish and may make some bullish correction.
NZD/JPY H4 Chart
NZD/JPY H4 Chart

NZD/JPY- Technical Analysis-H4 Chart

The chart shows that the price has been bullish on the H4 chart by obeying simple moving average 30. It made a long bearish correction before having the last bounce. Upon producing a bullish engulfing candle, the price then headed towards the upside. As of writing, the pair is making bearish correction again. Thus, the buyers may wait for the price to produce a bullish reversal pattern at the SMA 30 and go long in the pair. The price may find its resistance around 59.570.

On the contrary, if the price breaches the SMA 30 and makes breakout confirmation followed by a bearish reversal pattern, the sellers may go short in the pair. The price may find its support around 87.250.

NZD/JPY H1 Chart
NZD/JPY H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been bearish by obeying a trend line. At the last rejection, it produced a bearish engulfing candle. Since then it has been heading towards the downside with good bearish momentum. The pair may consolidate around 88.300. A bearish breakout below the level may generate more bearish momentum and drive the price towards the South further. The price may find its support around 87.700.

On the contrary, if the price makes a bullish breakout  at the trend line, the buyers may look go to long in the pair and push the price towards the North.

Considering both charts, it seems that the pair may end up being choppy. The SMA 30 has been working as support on the H4 chart. On the other hand, the trend line has been working as a resistance on the H1 Chart. Unless, the price breaks one of them, it may remain choppy on both charts.

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

Contact and follow Tareq on Twitter: @tareqfpn

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