NZD/JPY Reached a Significant Support Level

 

NZD/JPY decisively bounced off from the resistance at 83.70 after testing that level twice over the course of two months and in the process of that testing the pair formed a very clear double top which was obvious on all the large time-frames – the daily, weekly and monthly one. What is more, the pair also formed a pair of shooting star candlesticks on the monthly time-frame and, unsurprisingly, after such clear signals for an impending drop, it has been moving to the downside for several weeks now. Today NZD/JPY reached a significant support level though, namely the (MA)89 indicator on the weekly time-frame, which is at 79.00. Whether it will succeed it breaking out below that support is unclear yet, but if it does there will probably be a further move to the downside towards the next significant support level, which is at 76.70, and it coincides with the same indicator but on the monthly time-frame.