Daily Forex Update: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to fall inside the 30-minute Down Channel which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (8 bars) and maximum Clarity (10bars). NZD/JPY is expected to fall further inside this Down Channel – in line with the strong downtrend visible on the daily charts.

As can be seen from the daily NZD/JPY chart below, the price earlier broke through the support zone lying between the key support level 75.50 and 61.8% Fibonacci retracement of the previous upward correction 4 from May. This price area is acting as resistance zone after it was broken. The proximity of this resistance area and the strength of the daily downtrend increase the probability NZD/JPY will continue to fall inside this Down Channel.

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