NZDJPY

NZDJPY1D
Short
Aug 24 2021

MARKET FORECAST :

The analysis we published on 7th Aug carried neutral sentiments on NZDJPY because of the pair trading between an ambiguous zone i.e 77.24 and 78.0 which lead to maintaining patience until we could get an impulsive breakout at either end of the two price actions. NZDJPY took a temporary decisive breakout from our upper trend line i.e from 77.46 towards 77.90 - which was followed by a sharp bearish reversal from a strong resistane ahead i.e 78.0. We emphasized on the bearish side with the following factors :
The New Zealand dollars weakness which became a dovish driving excuse to pull NZDJPY along with it towards our exponential moving average 50 and 200 in weekly i.e 75.44-74.51. The aforementioned bearish scenarion became possible after the pair gave a bearish impulsive closing below our 61.8% fibb retracement level i.e 76.0. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Currently the market has managed to strive its way above 61.8% fibb level and our exponential moving average 200 in daily - marking the zone as a critical junction for either a bearish reversal or another hike towards exponential moving average 50 in daily i.e 77.0. In case NZDJPY managed to provide us with a bullish closing above 76.20 level, the pair will have its next target locked at our next upper trend line 77.0. After taking an exit from the oversold conditions in four hourly chart, NZDJPY is definitely heading towards 76.65 where we have senkou span b of ichimoku situated. This marks 76.65-77.0 as a no trade zone until we find a bearish structure because the overall trend of NZDJPY has shifted to supporting the bears.  The aforementioned scenario can only be denied in case New Zealand dollar managed to drag Japanese Yen all the way up at 78.20 and giving a fractal closing above the aforementioned major resistance zone. 