Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY recently broke the Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 8-bar level – which is the result of the slow Initial Trend (4 bars) and strong Uniformity and Clarity (9 bars each). NZD/JPY is expected to rise toward the forecast price 85.36.

As can be seen from the daily NZD/JPY chart below – the pair earlier reversed up sharply from the combined support area lying between the key support level 83.00 (which has been reversing the price from June), lower Bollinger Band and the 50% Fibonacci correction of the upward impulse from May. The proximity of this support area adds to the probability NZD/JPY will continue to rise toward the forecast price 85.36.