NZDJPY 4H Chart: Junior channel expected to prevails
The New Zealand Dollar has been trading in a one-month ascending channel against the Japanese Yen after the currency pair bounced off the lower boundary of a dominant channel.
The NZD/JPY exchange rate continues to maintain its ascending pattern and is gradually moving upward for a test of the upper boundary of the dominant descending channel. Meanwhile, the currency pair has moved past a strong resistance cluster formed by the combination of the weekly and the monthly pivot points near the 78.55 mark.
The overall market sentiment is bullish, therefore, the pair is likely to continue its upside movement during the following trading sessions.
The NZD/JPY exchange rate continues to maintain its ascending pattern and is gradually moving upward for a test of the upper boundary of the dominant descending channel. Meanwhile, the currency pair has moved past a strong resistance cluster formed by the combination of the weekly and the monthly pivot points near the 78.55 mark.
The overall market sentiment is bullish, therefore, the pair is likely to continue its upside movement during the following trading sessions.
Comment:
Our analysts used is as a reference point of the upper trend line of a medium term channel up pattern. The new pattern reveals that the currency exchange rate was facing additional support on Tuesday morning near the 0.78 mark. Moreover, during the next trading sessions, the trend line was set to join and support the monthly R1 near the 0.78.50 level.
Due to these reasons this pair is highly possibly going to soon reverse its direction and resume to surge.