By: Dima Chernovolov
NZD/JPY continues to fall inside the hourly Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (9 bars). NZD/JPY is expected to fall further inside this Falling Wedge – in line with the earlier breakout of the key support area shown below.
As can be seen from the daily NZD/JPY below, the price earlier broke the strong support area lying between the key support levels 75.00 and 76.00 – each coinciding with the corresponding Fibonacci correction level of the previous sharp upward impulse from October. This price area is acting as a strong resistance zone after it was broken. The proximity of this resistance zone increases the probability daily NZD/JPY will continue to fall inside this Falling Wedge .
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