NZDJPY is heading down for 5th consecutive day. Yet, the pair is right above strong support zone. Will bulls have enough power to continue the longterm trend?
It seems that NZDJPY is building a triangle formation on a daily chart, which might be both a formation of continuation or reversal. Overnight data from New Zealand does not help the dollars bulls, but after a quick decline pair found a ground at 81.90. Since then NZDJPY corrected almost whole move we’ve seen during Asian session.
Longterm trend is still bullish and current price action encourages for going speculatively long. Tomorrow, we will have a cleaner picture of the situation. If NZDJPY creates a pinbar in this particular place of chart it will be needed signal for bulls to buy the pair.
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Our bullish view is also supported by stochastic oscilator which is now really near the oversold area.
