Looking at the market above, we can see a neatly formed ascending triangle pattern, with resistance at 79.2. The ascending trend line is also being neatly respected, and price has been bouncing off nicely in the past two months.
I am now looking for price to either reach the trend line, then show price action confirmations of a rejection, and then enter and hold for a bullish breakout. Conversely, we can also wait for price to break the resistance level, then look to enter on the retest of this level once we see confirmations of 79.2 being a new support level.
Looking at NJ on the H4 timeframe, we can also see price is nicely channelling to the upside, and we are now looking for price to create the next higher low, before reversing and continuing the medium-term trend.
Look out for a break to the downside of the 78.6 support, where I am quickly expecting price to make the final touch before reversing.
NZD/JPY is considered a major cross-currency pairing but with volatility on the lower side. Although both are within the G10 currencies, this pair sees much lighter transaction volumes than others. Volumes account for less than 2% of the total transactions in the FX space.
Looking at the image above, we can see that there will not be any significant news events coming out throughout the following week. However, all these events together still add and create volatility in the market, regardless of the folder colour.
This is the sort of setup I am looking to possibly take; as we see the news events be filled, we could see price push down towards the channel's bottom and then looking to catch a reversal. Look out for price action confirmations regardless once price reaches between 62 - 79 percent on the Fib retracement above.
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