NZDJPY broke one of its major supports at 78.0 in June providing a structure of "abc" correction and a bullish reversal was expected which within 4 days landed the pair back into the zone of previous breakout, turning the support into major resistance with double trials of a breakout but failed and provided a new low instead at 75.94 this Thursday. On Friday NZDJPY formed a U-shape formation in H4 followed by a dark cloud cover candlestick being formed in D1, were enough for the Kiwi Yen to retrieve above its daily pivot and ending its weekly performance near the daily resistance one. 76.0 is a key price action level where more supply and demand has been provided in the market - making the traders focus on upcoming weeks move for Kiwi towards its monthly and weekly pivots i.e 77.82 and 77.90.  One of the most key levels was 75.90 with high supply and demand ratio, providing traders with a genuine opportunity to execute their trades in terms of buying NZDJPY and letting flow until the intraday moving averages and the daily EMA50. 

BULLISH/ BEARISH OPPORTUNITIES/ CONDITIONS :

A clear indication of reversal from 61.8% fibb level and the EMA200 on daily chart were cream trades to buy NZDJPY from 75.94 and 76.00 major price action levels. Based on this we will be observing NZDJPY to atleast retrace back to 50EMA and Intraday EMAs i.e 8, 13 and 21. Monthly and weekly pivots i.e 77.80 - 78.0 will be our destined target for now, the bullish wave might extend its way upto 78.60 as well which will be over main focal point to plan our trades further. Our upper trend line will be kept as the next decision making point because there are major hindrances along the way for the pair, any breakout below the lows at 75.80 will cause it to land near 50% fibb level and that would mean that the bearish rally has already been initiated. So in short, for now one can execute buy trades towards our aforementioned levels and after that a major fractal confirmation along with the technicals will decide the next stop for NZDJPY 

NZDJPY D1 Temporary Bullish

Jul 11 2021

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