New Zealand Dollar versus Japanese Yen went 100 pips in our favor in accordance to the analysis published on 31st August - portraying strong bullish sentiments on the pair. Main reason for considering the trend turning from bearish to hawkish tone was based on the breakout above our upper trend line at 76.80-77.0, indicating 23.6% fibb retracement level as our targeted destination at 78.30. Another major factor was the completion of bearish correction of higher degree at exponential moving average 50 and 200 on weekly chart and the reversal from 38.2% fibb retracement zone on monthly chart. In addition to this, bears failing to break below the monthly major support zone 74.30 and formation of piercing candlestick in monthly indicated that NZDJPY is determined with its next stop at 78.30. Putting some light over the bearish side; NewZealand Dollar versus Japanese Yen was trading below the neckline (78.30-79.20) of head and shoulder pattern formed in weekly time frame which will now again be our deciding point of further projection.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Relative strength index in daily and four hourly time frame are correcting themselves in order to take an exit from 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. In case we find a bullish closing above  Tenkan-Sen at 77.70 - should be considered as a good price action for executing buying positions for the next targeted destination would again be 78.80-79.15.

 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

Sep 09 2021