The descending trend line is broken
NZD/JPY price line started a bearish trend on 21sth of October 2021 and could descend up to 8.8% until 28th of January 2022. The price line then started a bullish phase and could break above the bearish trend line. The overall look of the chart is bullish at the moment and bullish positions are more potential of hitting TP.
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
On NZD/JPY price chart, the price at the moment is on 77.957 and the dynamic resistance is broken. The red line on the chart shows the resistance level that started forming on 21st of October 2021. The green line shows the dynamic support line which is constructing the current bullish trend. RSI is almost on 56 and is showing negative divergence. MACD is showing weak bullish trend. A retest of the broken resistance is expected and in case the price line reacts bullishly to the green support line, buyers can enter the market and they can target 78.3 and 79.18. Note that this theory is as long as the trend line does not break below 76.42 .
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.