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NZD/JPY: Triple Bottom support is in play

EagleFX

NZD/JPY has been bullish in the daily chart for several days. The price had a bounce at triple bottom support and made a breakout at the neckline. It has been heading towards the North at a good pace, but intraday charts suggest that it may create more bullish momentum. Let us now have a look at three key charts.

Chart 1 NZD/JPY Daily Chart


The daily chart shows that the price had a bounce at the level of 68.430 three times. At the third bounce, the chart produced a bullish inside bar and headed towards the North. It made a breakout at the neckline and traded above the level for several hours. The chart shows that the last swing high is at 71.580. The buyers may wait for the price to consolidate and push the price towards the next level of resistance. Since it is triple bottom support, the price may make a breakout at the last swing high. If that happens, the pair may make a long bullish move.



Chart 1 NZD/JPY Daily Chart


The chart shows that the price made a bullish move upon producing a double bottom. It made a significant breakout at the level of 79.970 and consolidated around the level. It made a breakout at consolidation resistance and headed towards the North. The price may find its next resistance around 71.225. As far as the risk-reward ratio is concerned, the H4 chart looks a perfect chart to go long in the pair. However, if the price does not get bullish but consolidates again, the level of 69.970 is going to be a crucial level to determine its next route.

Chart 1 NZD/JPY H4 Chart


The H1 chart shows that the price made a significant breakout at the level of 70.290 and traded above the level for several candles. The buyers are to wait for the price to make a bearish correction to offer them a short entry. If the price comes back to the breakout level and produces a bullish reversal candle, the buyers may go long in the pair and push the price towards the North. The price may find its next resistance around the level of 71.000. If the price breaches the level, it may get choppy and find its next support around 69.900.

The daily and the H1 chart look good, and the H4 chart looks even better for the buyers. Considering these three charts, it seems that the bull is going to dominate in the pair today. Thus, the pair may end up producing a bullish candle in the daily chart.

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