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!
NZDJPY H4(4 Hour) Chart Analysis – Bearish Trend Pattern, ADX Indicator, Two Key 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, and lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like the correction that we are looking for is happening. 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 yet another evidence of bearish pressure. Also, we have two key resistance zones that have formed. The first key resistance zone is formed by the 100%(84.741) Fibonacci expansion level of the first wave and the 100%(85.461) Fibonacci expansion level of the second wave. The second key resistance zone is formed by the 161.8%(86.965) Fibonacci expansion level of the first wave and the 161.8%(87.719) Fibonacci expansion level of the second wave. Until both these key resistance zones hold my short-term view remains bearish here and I expect the price to move lower further.
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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Arvinth Akash
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