Hello traders! The NZD/JPY currency pair has been range-trading, along with many other NZD pairs. In regards to the NZD/JPY price has found the resistance near 69.60 area, while the support has been established at 68.20.
The 68.20 support clearly corresponds to the 61.8% Fibonacci retracement level applied to the last wave up, where NZD/JPY produced a 71.66 high. Along with the Fib support, the 200 Exponential Moving Average has been rejected on two occasions. First time on the June 24, when price rejected the support area. The second time it was on June 26, which could have been the starting point of the yet another wave to the upside.
But we can also see that price is forming the triangle pattern, and the downtrend trendline can still act as the resistance. For buyers, it might be the safest way to wait until the triangle breakout and then act accordingly. Nonetheless, trend remains bullish and lower price will get, better buying opportunity it might present.
The key resistance and the first upside target is located at 70.35 area and confirmed by two Fibonacci retracement levels. First, is 23.6% Fibs applied to the last wave up, while the second is 61.8% applied to the recent corrective wave down.
All-in-all, the buying opportunity might remain open as long as price stays above the 68.19 support. On the other hand, if the support is broken, sellers are likely to regain the control, pushing price down, potentially towards the 63.50 support area.
Bias: Strongly bullish while above 68.19
Potential Support Zone: 68.40 – 68.90
Potential Targets: 70.35
Have a profitable trading!