A Close Above MONTHLY 50 EMA Could Take NZDJPY Towards 83.500
Price is currently confined in a descending channel or wedge on the weekly charts with multiple tests occurring on both sides of the channel making it more and more potent if a breakout occurs!
The blue lines on the main charts represent the support and resistance levels drawn from the monthly charts and as of few weeks ago the 75.000 level was respected and now the price seems to be heading towards the next resistance that lies in the 83.000 region. For this to take place the channel on the weekly charts must be broken convincingly and most importantly the MONTHLY 50 EMA must be broken to the upside (the monthly price candle must close above the monthly 50 EMA). Have a look at the picture below for further illustrations
Once all these take place and fundamentals starts to align with technical picture, we can take this pair LONG with swing trading chance towards the 83.5000 level.
On the flip side, shall the trendline gets rejected again on the weekly charts, then we can take this pair SHORT (day trading chance) towards the support beneath at 74.5000 level. see the image below for the technical aspects for the SHORT trade
If the wedge is broken, the daily 50 EMA must be broken too in the process for the SHORT trade to be confirmed. Once this all takes place we wait for the price to slightly retrace before making an entry
Shall there be any updates i would provide them in a new thread. this just represents my personal technical analysis behind this pair.
The blue lines on the main charts represent the support and resistance levels drawn from the monthly charts and as of few weeks ago the 75.000 level was respected and now the price seems to be heading towards the next resistance that lies in the 83.000 region. For this to take place the channel on the weekly charts must be broken convincingly and most importantly the MONTHLY 50 EMA must be broken to the upside (the monthly price candle must close above the monthly 50 EMA). Have a look at the picture below for further illustrations
Once all these take place and fundamentals starts to align with technical picture, we can take this pair LONG with swing trading chance towards the 83.5000 level.
On the flip side, shall the trendline gets rejected again on the weekly charts, then we can take this pair SHORT (day trading chance) towards the support beneath at 74.5000 level. see the image below for the technical aspects for the SHORT trade
If the wedge is broken, the daily 50 EMA must be broken too in the process for the SHORT trade to be confirmed. Once this all takes place we wait for the price to slightly retrace before making an entry
Shall there be any updates i would provide them in a new thread. this just represents my personal technical analysis behind this pair.
