Hi Traders! NZDJPY forecast and technical analysis is here. In this post, we are going to perform multi-timeframe technical analysis on this pair to find the possible trade opportunities. The platform in which we are going to perform this analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. Now, let’s start the muti-timeframe analysis.
NZDJPY D1(Daily) Chart Analysis – Key Support Zone, Bullish Hidden Divergence
On the daily chart the price which was moving lower reached a key support zone formed by the 200 moving averages, respected it, and is currently holding above it. Also in addition to this we have a hidden bullish divergence that has formed between the first low that has formed on 17th May 2020 and the second low that has formed on 21st June 2020 based on the histogram of the MACD indicator which we may consider as evidence of bullish pressure. 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 – Important Support Zone, Bullish Divergence, Downtrend Line Breakout
On the H4 chart, we had a double wave to the downside and while measuring the first leg of this double wave we had three important support zones that have formed based on the fibonacci expansion levels. The price which was moving lower reached the first support zone at 61.8% (67.877) fibonacci expansion level, respected it, and is currently moving higher. We also had a bullish divergence between the first low that has formed on 12th June 2020 and the second low that has formed on 21st June 2020 which we may consider as evidence of bullish pressure. In addition to this, the price which was moving higher has currently broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. So until the important support zone at 61.8% (67.877) fibonacci expansion level holds my view remains bullish here and I expect further continuation higher.
Technical Analysis & Forecast Summary
NZDJPY D1(Daily) Chart Analysis
- Key Support Zone, Bullish Hidden Divergence
NZDJPY H4(4 Hours) Chart Analysis
- Important Support Zone, Bullish Divergence, Downtrend Line Breakout
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