NZDJPY has once again surprised us with a very strong bullish momentum by breaking out of our second upper trend line as well - confirming that the pair has entered into the bullish trend and is currently trading inside the ichimoku cloud - below Senkou Span A. NZDJPY broke out of strong weekly resistance 77.16 and is heading towards another major resistance zone 77.93 and 78.30 i.e 23.6% fibb retracement zone on montly chart. The bearish correction of higher degree completed at exponential moving average 50 and 200 on weekly chart and reversed from 38.2% fibb retracement zone on monthly chart. Bears failing to break below the monthly major support zone 74.30 and formation of piercing candlestick in monthly indicates that NZDJPY is determined with its next stop at 78.33. NewZealand Dollar versus Japanese Yen is trading below the neckline (78.30-79.20) of head and shoulder pattern formed in weekly time frame, the aforementioned will be the deciding point for further confirmation of projection of the pair. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In daily time frame the Senkou Span A of the ichimoku cloud and 77.80 price action might become a temporary resistance zone to provide a bearish retest of the exponential moving average 50 and 200 before continuing any higher towards the neckline of head and shoulder pattern in weekly. Relative strength index in daily and four hourly time frame have entered the overbought conditions and will drive the pair lower to correct its technical indicators. Keeping the aforementioned daily analysis in regard to the intraday time frames, we should expect a short bearish reversal towards 76.54-76.83 followed by the continuation of bullish trend. Incase NZDJPY broke below 75.90, 74.82 will be our targeted destination. A further breakout below would lead the pair towards 72.65.  

NZDJPY

Aug 31 2021

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