Daily Forex Update: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to rise inside the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge chart at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). NZD/JPY is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal form the support area shown below.

As can be seen from the daily NZD/JPY below, the price earlier reversed up from the support area lying between the support level 75.20, 50% Fibonacci correction of the previous upward impulse from January and the support trendline from December (former resistance trendline). The proximity of this support area increases the probability NZD/JPY will continue to rise inside this Rising Wedge.