NZDJPY rally stalled at the key Fibonacci retracement level.

NZDJPY Chart Analysis

The NZDJPY chart shows that the pair is retrieving down from the 87.10 key resistance level. This is also a confluence zone of the past peak points the pair has attained and dropped sharply from. Currently, the pair is just trading around the Fibonacci 78.60% level that is drawn between the September peak and October low points. The 20, 50 and 200-day SMA lines are heading upwards and the pair is trading well above the SMA levels indicating a bullish momentum of the market. However, now the prices have started to retrieve and we could see a sharper decline in NZDJPY from here.

NZDJPY Chart Direction Bias – 1 Week

Trade Insights – NZDJPY

The chart shows viable short positions below the Key Resistance level at 87.10 to first test the major Pivot at 86.35. If NZDJPY drops below the major pivot, then we could take further short positions to test the Key support level at 85.15. If the momentum continues. Bears can also test the support zone between 84.40 to 84.00 levels.

Alternatively, Chart shows possible long positions above the key resistance level at 87.10 with the first target of the resistance zone between 87.85 to 88.20.