NZD/JPY May Bounce Off from the High at 76.26

 

NZD/JPY has been very bullish for the past two months and it has climbed from 76.26 to the high at 83.26 but it appears that the aforementioned bullish trend is finally becoming exhausted, if the spinning top candlestick on the weekly time-frame at the high at 76.26 is any indication. Such a candlestick is a signal for indecision and not necessarily a reversal, but its presence is still reason enough to consider a possible move to the downside. Should that occur, the closest target will likely be around 80.50. On the other hand, if the pair breaks out above the high at 76.20 and continues moving to the upside it will likely reach 83.80, which is the previous high that can also be seen on the weekly time-frame.

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.