Daily Forex Update: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to fall after the earlier breakout of the Rising Wedge chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this Rising Wedge at the 3 bar level – which reflects the medium Initial Trend (6 bars) and significant Uniformity and Clarity (both rated at the 8 bar level). NZD/JPY is expected to fall toward the forecast price 81.40 – continuing the active downward price impulse from resistance area shown below.

As can be seen from the weekly NZD/JPY chart below, the breakout of this Rising Wedge continues the active downward impulse wave, which started earlier from the resistance zone lying between the major, multi-month resistance level 83.70 (which also reversed the price in December and January) and the upper daily Bollinger Band. The proximity of this resistance zone adds to the probability NZD/JPY will soon reach the forecast price 81.40.

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