Daily Forex Update: NZD/JPY
By: Dima Chernovolov
NZD/JPY continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), below-average Uniformity (4 bars) and near-maximum Clarity (9 bars). NZD/JPY expected to fall further inside this Down Channel – in line with the earlier breakout of the powerful support level shown below.
As can be seen from the daily NZD/JPY chart below, the price earlier broke through major, long-term support level 76.30 (which has been reversing the price from last May). This price level is acting as strong resistance after it was broken. The proximity of this resistance level and the strength of the active daily downtrend increase the probability NZD/JPY will continue to fall inside this Down Channel.
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