Over 2 months in a down trend

At the end of January attack on the pair of NZDJPY at 83.30 failed. As a result, a double-top formation appeared on the chart and a regular sell-off lasts until today. The downward movement in that period was corrected on support 79.10, 77.70, after which both levels were broken.

NZDJPY H4

Key support test

In current week NZDJPY reached support 77.00. The most probable scenario awaiting us is a reflection, which, however, can only be a correction before a break through this support. After rebounding nearest demand targets will be: 77.70, 79.10. However, if 77.00 support would be broken without correction (which is unlikely scenario) then a straight path for bearish move would be opened towards the support of 75.80.

NZDJPY D1

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