Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY recently broke the daily Falling Wedge chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). NZD/JPY is expected to rise toward the forecast price 72.70 – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily NZD/JPY chart below, the pair recently reversed up from the support area lying between the key support level 70.40 (which stopped the previous sharp downtrend in May) and the lower daily Bollinger Band. The proximity of this support area increases the probability NZD/JPY will continue to rise toward the forecast price  72.70.