Hi Traders! Today I am sharing with you the NZDJPY short term forecast and technical analysis post. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!. Now, let’s start our analysis from the highest timeframe which will be the H4 chart here.
NZDJPY H4(4 Hours) Chart Analysis – Key Resistance Zone, Bearish Divergence, ADX Indicator
On the H4 chart, the price reached a key resistance zone that has formed based on the 100%(87.282) Fibonacci expansion level of the big wave and the 161.8%(87.729) Fibonacci expansion level of the small wave. The price respected this zone and is currently bouncing lower from it. Also, we have a bearish divergences that has formed between the first high formed at 85.411 and the second high formed at 87.306 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidence supporting this short-term bearish view.
NZDJPY H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Lower Lows, Uptrend Line Breakout, ADX Indicator
On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward-moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has also broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Also, the price moved lower and has created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So the bottom line here is that, everything looks good here for the bears here as well and I expect the price to move lower further in the short term after pullbacks until the key resistance zone (marked in red) shown in the image below holds.
Technical Analysis & Forecast Summary
NZDJPY H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Divergence, ADX Indicator
NZDJPY H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Lower Lows, Uptrend Line Breakout, ADX Indicator
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
