Hi Traders! NZDJPY forecast and technical analysis post is here. In this pair, multi-time frame technical analysis method will be applied in order to look for all the possible evidences that support my view on the current trading timeframe and the higher timeframe. The platform in which we perform this multi-timeframe analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. We will start our analysis from the highest timeframe now which will be the daily chart here.
NZDJPY D1(Daily) Chart Analysis – Parabolic Sar, ADX Indicator
On the daily chart we have a bullish rally which started on 19th March 2020. Currently there are no signs that show this bullish trend is over yet. In addition to this based on the Parabolic Sar we could see that the dots are below the price which we may consider as evidence of bullish pressure. Also the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
NZDJPY H4(4 Hours) Chart Analysis – Range, Magnet Zone
Looking at the H4 chart we could see that the price has created two waves to the upside and currently it looks like a correction is happening in the form of range. While measuring the two waves using the fibonacci expansion tool, we have a magnet zone that has formed based on the 261.8%(73.614) fibonacci expansion level of the first wave and the 61.8%(73.538) fibonacci expansion level of the second wave. Price still has room higher towards this magnet zone and currently there are no signs opposing this bullish view. So based on all this my view here is bullish and if we get a valid breakout above the high at 72.300, we may then consider it as a validation for the bullish view and may expect the price to continue higher further.
Technical Analysis & Forecast Summary
NZDJPY D1(Daily) Chart Analysis
- Parabolic Sar, ADX Indicator
NZDJPY H4(4 Hours) Chart Analysis
- Range, Magnet Zone
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