In our previous analysis published on 9th Sept, we anticipated that 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. On the bearish note we were expecting that ; 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. The relative strength index in daily and four hourly time frame went for a bearish correction as anticipated in our previously published analysis - the taken exit from the overbought conditions might drive the pair lower to correct its technical indicators. The exponential moving average 50 in daily time frame is acting as a support and preventing the pair from falling any lower at the moment. If NZDJPY maintains itself below the 61.8% fibb retracement level i.e 78.0 on the daily time frame, we can expect the pair to retest 77.34 at 50% fibb. A further bearish move is dependent on a breakout below 50% fibb level with an impulsie stance that can lead NZDJPY towards exponential moving average 200 on the daily chart. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The NZD/JPY currency pair has been trading in an ascending channel pattern since August 20. The New Zealand Dollar has surged by 4.90% against the Japanese Yen during this period.

Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout. If the breakout occurs, a decline towards the 200– period simple moving average at 77.00 could be expected next week. However, if the channel pattern holds, buyers could drive the currency exchange rate higher during the following trading sessions. 

NZDUSD

Sep 17 2021