Hi Traders! Today I share with you my NZDJPY short term forecast and technical analysis post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
NZDJPY D1(Daily) Chart Analysis – Heikin Ashi Candles, Higher Highs, ADX Indicator
On the daily chart, we have a strong bullish momentum and the price which is moving higher has created higher highs based on the MACD indicator. which we may consider as 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, which we may consider as another evidence 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 value over 25, we may consider this as yet another 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, Key Support Zones, Stochastic Oscillator
On the H4 chart, we could see that currently it looks like a flat correction is happening in the form of a range. While measuring the first and second wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 100%(80.657) Fibonacci expansion level of the first wave, 100%(80.404) Fibonacci expansion level of the second wave and the bottom of the range. The second key support zone is formed by the 161.8%(79.699) Fibonacci expansion level of the first wave and 161.8%(79.506) Fibonacci expansion level of the second wave. Also, based on the Stochastic Oscillator we could see that the price is nearing the extreme which is a good sign favoring the bulls. Until both the key support zones hold my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
NZDJPY D1(Daily) Chart Analysis
- Heikin Ashi Candles, Higher Highs, ADX Indicator
NZDJPY H4(4 Hours) Chart Analysis
- Range, Key Support Zones, Stochastic Oscillator
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 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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Happy Trading!
Arvinth Akash
Traders Academy Club Team
