Trade of the Day: NZD/JPY
By: Dima Chernovolov
NZD/JPY recently broke the key resistance level 78.67 which was previously identified by Autochartist on the 15-minute charts. Autochartist rates the Significance of this resistance level at the 4-bar level – which is the result of the four previous price reversals from this price level. NZD/JPY is expected to continue to rise toward the forecast price 78.84.
As can be seen from the daily NZD/JPY chart below – the price earlier broke the resistance zone lying between the resistance level 78.25 (which has been reversing the pair from the middle of November), intersecting with the 50% Fibonacci correction of the earlier sharp downward impulse from November. This rice area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability NZD/JPY will continue to rise toward the forecast price 78.84.