Daily Forex Update: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to fall inside the daily Descending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 8-bar level – which is the result of the strong Initial Trend (7 bars) and near-maximum Uniformity and Clarity (both rated at the 9 bar level). NZD/JPY is expected to fall further inside this Descending Triangle – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily NZD/JPY chart below, the last connecting pivot of the upper trendline of this Descending Triangle formed near the resistance area located between the resistance level 74.30 and the 61.8% Fibonacci correction of the previous downward impulse from the end of September.  The proximity of this resistance area and the strength of the downtrend visible on the daily charts increases the probability NZD/JPY will continue to fall inside this Descending Triangle.

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