Today’s Analysis – NZDJPY – trading in a probable broadening wedge, confirmation will be on a break of resistance.
The immediate price target however is the local support for an S/R flip confirmation.
Points to consider, - Local trend bearish - Down sloping resistance objective - Local Support S/R Flip - RSI channel - Volume Below Average
NZDJPY’s immediate trend is bearish with consecutive lower highs under major structural resistance.
Price holding the .618 Fibonacci increases the probability of establishing a lower high compared to the Dynamic resistance.
An impulse move back to local support for an S/R flip confirmation is probable.
The RSI is in a clear channel, breaking the support of the channel will coincide with a move down.
Volume is currently below average, an influx is highly probable when price action tests local support as this is a clear trade location.
Overall, in my opinion, NZDJPY is likely to test local support for an S/R flip retest. Holding this will increase the probability of taking out the Dynamic resistance of the larger macro falling broadening wedge.
What are your thoughts?
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