New Zealand Dollar versus Japanese Yen has almost created a head and shoulder patter in the weekly time frame and will complete at the exponential moving average 200 i.e 75.0. Stochastic Oscillator are in the oversold conditions while awesome oscillator is showing weak bearish momentum even after such a strong fall in the daily time frame as well as weekly. The Senkou Span A resides near 74.40 price, which denotes that the pair might have some room for a further dovish tone. A short term buy with targeted destination at the exponential moving average 50 can be a good trade.

According to elliot wave pattern on the daily time frame, we can expect the current impulsive leg to be the 'c' wave of the higher degree which means the completion of a bearish correction. The awesome oscillator along with the relative strength index are trading in the oversold conditions and signs for recovery. The awesome oscillator can be seen with prominent divergence being formed between 2nd december low and the current market price. This signal a strong bullish move which can target the exponential moving averages 50 and 200 near 77.50 - 77.70. Also the market is retesting our trend line on the daily chart where it can be seen unbroken for now. A bullish impulsive closing above the trend line would signal a confirm buy towards our aforementioned levels near the exponential moving averages 50 and 200. 

Unless 74.50 price is broken, we are staying bullish on NZDJPY. In the bearish scenario, we would require a further impulsive breakout below the 74.50 order block to continue its bearish trend. 

NZDJPY Supposedly Completes Bearish Correction

Jan 30 2022