NZDJPY is in a downward trend, where the highs and lows are formed at lower and lower levels. After setting lows at 76,07 last month, the rate began to correct the last impulse and reached the resistance at 77,40, which coincides with the 20-day SMA.

In addition, the H4 chart shows that the correction took the form of a flag, and the resistance at 77.40 coincides with the upper limit of this formation.

If the pair is still to move within the corrective formation, a reflection from resistance and a move towards channel support is expected. In turn, breaking the support of the channel would open the way for further declines, and thus continue the prevailing tendency.

Alternatively, in the event of accelerated growth, the inflow of offers may still appear in the vicinity of the 50-percent abolition of the last downward trend, which coincides with the downward trend line running from the September highs in the near future.

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