Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY recently broke the 15-minute key support level 78.42 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five earlier price reversals from this price level. NZD/JPY is expected to fall further toward the forecast price 78.42.

As can be seen from the daily NZD/JPY chart below – the price earlier reversed down form the resistance area lying between the major resistance level 79.00 (which has been reversing the price from the end of February) and the upper daily Bollinger Band. The proximity of this resistance area and overbought daily Stochastic add to the probability NZD/JPY will continue to fall toward the forecast price 78.42.