Hi Traders! NZDJPY short-term forecast and technical analysis post 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 Home Trader Club Spoiler alert – free memberships are available!
On the H4 chart, the price which was moving lower reached a strong support zone respected it and bounced higher from this zone. The price then moved higher and has broken above the most recent downtrend line, which we may consider as evidence of bullish pressure. In addition to this, we could see that the price has created a bullish divergence formed between the first low formed at 90.485 and the second low formed at 89.937 based on the MACD indicator. The price then moved higher and broke above the last high at 91.596 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as other evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here, at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads a value over 25, we may consider this as yet another evidence of bullish pressure. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. So based on all this, until the strong support zone shown in the image below (marked in green) holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Home Trader Club Team
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