Hi Traders! NZDJPY Technical Analysis And Short Term Forecast is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available!
NZDJPY H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Bearish Hidden Divergence, Bearish Divergence, Two Strong Resistance Zones
On the H4 chart, we could see that the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we are looking for is happening in the form of double wave to the upside. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed at 85.646 and the second high that has formed at 84.754 based on the MACD indicator, followed by a continuing bearish divergence between the first high that has formed at 84.754 and the second current high that has formed at 85.029 based on the MACD indicator, we may consider these as other evidences of bearish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme and is bouncing lower, which we may consider as yet another evidence of bearish pressure. Also, we had two strong support zones and the price which was moving lower has broken below these zones and holding below them. We may consider this as yet another evidence of bearish pressure. Currently these two strong support zones are acting as two strong resistance zones for us. Until both these resistance zones hold my short term view remains bearish here and I expect the price to move lower further.
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