At the beginning of November, NZD/JPY broke above the downtrend trendline, which could have been the very first sign of a trend reversal. Then it went further up and broke above the 200 Exponential Moving Average. But throughout the past 3 weeks, the price was struggling to break above the 200 Simple Moving Average. But today, a new higher high is being produced, which seems to be confirming the break above the 200 SMA.
This is an extremely bullish price action, implying strong growth for NZD/JPY in the coming week or two. As a result, the price might increase by approximately250 pips because the nearest resistance is located near the 76.60 price area. This resistance is confirmed by a 50% Fibonacci retracement level and corresponds to the previously formed supply/demand area.
On the daily chart, the consolidation has been ongoing from the end of May up until the beginning of November, when the price broke above the range. Prior to that, 200 SMA has been acting as the support and the uptrend trendline got rejected. Perhaps now is the time when the strong uptrend will continue.
Fibonacci, applied to the corrective move down, after a confirmed break above the 71.60 resistance on the weekly chart, shows that 361.8% corresponds to the 50% Fibs as per the weekly chart. This makes a 76.60 resistance area an extremely strong supply zone and should be watched either for rejection of a break above when/if reached.
On the downside, a break below the 72.70 support area will invalidate the bullish forecast, and NZD/JPY will most likely move towards the uptrend trendline and/or the 71.60 support.
Key support levels: 72.68, 71.67
Key resistance levels: 74.00, 76.60
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
This is an extremely bullish price action, implying strong growth for NZD/JPY in the coming week or two. As a result, the price might increase by approximately250 pips because the nearest resistance is located near the 76.60 price area. This resistance is confirmed by a 50% Fibonacci retracement level and corresponds to the previously formed supply/demand area.
On the daily chart, the consolidation has been ongoing from the end of May up until the beginning of November, when the price broke above the range. Prior to that, 200 SMA has been acting as the support and the uptrend trendline got rejected. Perhaps now is the time when the strong uptrend will continue.
Fibonacci, applied to the corrective move down, after a confirmed break above the 71.60 resistance on the weekly chart, shows that 361.8% corresponds to the 50% Fibs as per the weekly chart. This makes a 76.60 resistance area an extremely strong supply zone and should be watched either for rejection of a break above when/if reached.
On the downside, a break below the 72.70 support area will invalidate the bullish forecast, and NZD/JPY will most likely move towards the uptrend trendline and/or the 71.60 support.
Key support levels: 72.68, 71.67
Key resistance levels: 74.00, 76.60
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice