NZDJPY upside potential after consolidation
On the weekly timeframe, we can spot a bearish trendline that started in 2015 and has been confirmed so far. We've had several LH points, starting with Jan 2015, Apr 2015, Jul 2017, Jan 2018. We can expect another one to be formed towards the end of 2018.
On the daily timeframe, we can spot a consolidation box between August and the present time, with a bullish break occurring in the last 2 trading days. Since this is the 4th break on the upper side of the consolidation box, we can expect a bullish trend to follow, up to 77.775.
This can potentially touch 78, as a key psychological level, or 78.4 on the bearish trendline.
The Fibonacci levels between the latest LH and HL place a 61.8% level at 78.03, which again indicates a very important area of concentration around 78. Based on the fib levels, if the price closes above 78, with the potential to touch 78.88 (71% fib), it will indicates a high probability of reversal down to at least 76.955 (50% fib).
Since the 4H timeframe indicates a lack of a clear bullish trend, we should monitor this timeframe for a bullish reversal pattern, to find a good long trade entry point.
On the daily timeframe, we can spot a consolidation box between August and the present time, with a bullish break occurring in the last 2 trading days. Since this is the 4th break on the upper side of the consolidation box, we can expect a bullish trend to follow, up to 77.775.
This can potentially touch 78, as a key psychological level, or 78.4 on the bearish trendline.
The Fibonacci levels between the latest LH and HL place a 61.8% level at 78.03, which again indicates a very important area of concentration around 78. Based on the fib levels, if the price closes above 78, with the potential to touch 78.88 (71% fib), it will indicates a high probability of reversal down to at least 76.955 (50% fib).
Since the 4H timeframe indicates a lack of a clear bullish trend, we should monitor this timeframe for a bullish reversal pattern, to find a good long trade entry point.