NZDJPY to break higher?
The NZDJPY has formed a quadruple bottom, and with the pair breaking out of the descending channel that has been forming during all of 2018, the risk of a breakout higher is increasing. The previous support from the April 2017 lows comes in at 75.58, the previous high is at 75.50, the 38.2% Fib is at 75.81 and the 200DMA is converging at that same level. It is apparent that a daily close above this area of resistances would risk a move towards the 161% extension of the summer range to 77.54 or even the 61.8% Fib of the channel’s range at 78. In case of a rejection lower watch the broken channel’s resistance as support, buyers might attempt to push the pair higher from there (roughly at 74.50).
Blake Morrow
