Weekly Trading Signal: NZDJPY

NZDJPY: SELL

 

There is now a bearish possibility on the NZDJPY exotic cross as a result of the analysis given here. On the chart, the EMA period 56 and the RSI period 14 are used. Since the beginning of this year, this cross had been trending upwards, accentuated by vivid higher highs and higher lows. Then, starting from last week, the price began to find it a kind of difficult to trend higher. Since the price touched the resistance level at 79.50, it started to consolidate to the downside. The consolidation continued till today, as the price went below the EMA 56, closing below it and poised to continue trending lower. The RSI period 14 has also moved below the level 50. This is a Bearish Confirmation Pattern. It would thus be recommended that only short trades be sought. The price is expected to break the support level at 78.00 to the downside. At the time this article was being prepared, the NZDJPY was trading at 78.30. The stop could be put at the resistance level of 80.30, while the support level at 72.30 is given as a target.

Chart: 4 hour

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