Hi Traders! Today I share with you my NZDJPY technical analysis and short term forecast 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 – Psychological Level, Bearish Divergence, ADX Indicator
On the daily chart, the price which was moving higher reached 87 psychological level, respected it and bounced lower from this zone. Also, we have a bearish divergence that has formed between the first high that has formed at 86.948 and the second high that has formed at 87.342 based on the MACD indicator which we may consider as evidence of bearish pressure. 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 value over 25 which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and basically I expect short term bearish moves to happen here. We may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.
NZDJPY H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Two Strong Resistance Zones
On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. In addition to this, 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. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also, we had two strong support zones that has formed and the price which is moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones hold my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
NZDJPY D1(Daily) Chart Analysis
- Psychological Level, Bearish Divergence, ADX Indicator
NZDJPY H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bearish Trend Pattern, Two Strong Resistance Zones
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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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
