By: Dima Chernovolov
NZD/JPY recently broke the hourly Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), higher Clarity (6 bars) and lower Uniformity (3 bars). NZD/JPY is expected to fall toward the forecast price 78.60.
As can be seen from the daily NZD/JPY chart below – the price earlier reversed down from the major resistance level 79.15 (which has been reversing the price from February) – strengthened by the upper daily Bollinger Band. The proximity of the resistance level 79.15 increases the probability NZD/JPY will continue to fall toward the forecast price 78.60.