Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to rise inside the daily Flag chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Flag at the 8-bar level – which is the result of the medium Initial Trend (10 bars), medium Uniformity (5 bars) and strong Clarity (9 bars). NZD/JPY is expected to rise further inside this Flag – in line with the earlier upward reversal from the key support area shown below

As can be seen from the daily NZD/JPY chart below – the bottom of this formed near the support area lying between the key support level 63.70 (which reversed the price twice in April), lower daily Bollinger Band and the 38.2% Fibonacci retracement of the previous upward impulse from March. The proximity of this support area adds to the probability NZD/JPY will continue to rise inside this Flag.