Hi Traders! NZDJPY technical analysis and forecast 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 – Range Breakout, Parabolic Sar, ADX Indicator
On the daily chart, the price was moving inside a range which started on 7th June 2020. This range is formed by the highs and lows reaching similar resistance and support zones. The price which was respecting these two zones so far has currently broken below the bottom of it. We may consider this as evidence of bearish pressure. In addition to this based on the Parabolic Sar we could see that the dots are above the price which we may consider as another evidence of bearish pressure. And also there are no signs of trend change in play here. Also based on the ADX indicator we got a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
NZDJPY H4(4 Hours) Chart Analysis – Bearish Trend Pattern, ADX Indicator, Strong Resistance Zone
On the H4 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. Also, we had a strong support zone and the price which is moving lower has broken below this strong support zone and is holding below it. Currently, this support zone acts as a strong resistance zone for us. We may consider these as evidences of bearish pressure. So based on all this my view here is bearish and I expect the price to continue lower further until this strong resistance zone holds.
Technical Analysis & Forecast Summary
NZDJPY D1(Daily) Chart Analysis
- Range Breakout, Parabolic Sar, ADX Indicator
NZDJPY H4(4 Hours) Chart Analysis
- Bearish Trend Pattern, ADX Indicator, Strong Resistance Zone
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