According to our analysis published on 22nd July, we gave bullish projections of the pair with targeted destination at 78.10, while the friday market closing was given at 77.25. We still are within the bullish rally with slight changes in accordance to the market structure after taking a bullish reversal from our exponential moving average 50 in weekly while still lying below our weekly resistance i.e 78.35. The relative strength index in weekly has also managed to get itself back above 51 but MACD on the other hand has been losing its bullish momentum showing signs of weakness. Going down to our daily chart, NZDJPY made an attempt of breaking above our exponential moving average 50, making a lower high at 77.70 while the MACD has been reverting from its bearish momentum, indicating that the pair will be in pace for a minor bearish reversal towards 76.65 (point of previous breakout from daily resistance) and then take a continuation of bullish rally towards our previous targeted destination 78.10.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

The market took a bearish reversal from ichimoko cloud in daily time frame while in four hourly still managing to stay above it. The ichimoko cloud in four hourly chart lyes at 76.65 (point of previous breakout from daily resistance), a bullish closing as a fractal above this zone might point towards the continuation of bullish trend. Another scenario can also be taken in consideration of the New Zealand dollars weakness which can become a dovish driving excuse to pull NZDJPY along with it towards our exponential moving average 50 and 200 in weekly i.e 75.44-74.0. The aforementioned bearish scenarion can only be possible if we see the pair giving a bearish impulsive closing below 76.0-75.60. Its also advised to the retail traders for keeping an eye over the lower trend lines in daily which can become a point of bullish reversal and on the same side a closing below a fractal to bearish sentiments. 

NZDJPY H4

Aug 07 2021