FX.co ★ deja.schimmel | NZD/JPY

#NZD/JPY (H1)

Hello traders! The New Zealand dollar is currently in an uptrend on the higher timeframe, but on the hourly chart, it is actively declining. I assume this is a corrective pullback and it will not last long. Today, I expect to see how market participants will search for a bottom to reverse the price. First of all, I want to explain why there has been such a significant decline in NZD/JPY on the hourly interval. Firstly, we encountered strong resistance around the levels of 90.50 and 90.70. This led buyers to start taking profits, creating a selling zone. Currently, we are moving within the range of 89.28, indicating that the recent decline was aggressive from the sellers' side, as it seems quite evident. According to the RSI, there might be a slowdown towards midday and an attempt to pause the downward movement. The MACD indicator shows a smaller angle of inclination, suggesting a possible price retracement in the opposite direction. The current price movement cannot be classified as a downtrend, but rather a correction within the overall uptrend. In terms of levels, here is the scenario I see: - The support level is not far away, especially considering the recent lows at 89.20 and 89.00, which is the current area where the price is heading. - The demand zone is slightly below 88.70, which could potentially lead to a local price reversal in the future. - As for resistance, it is located at significant levels: 89.80 and 90.00, areas where sellers may push the price down or completely change the market structure. To at least break the correction, the price needs to reach the range of 90.50, and only then can other possibilities be considered. For today, here is the scenario: if the price does not return to the range of 89.80 and buyers do not show initiative to end the downward correction, the targets remain the same as yesterday at 89.00 and 88.70. This scenario seems more realistic as the market will aim to fully work through the current correction. Tomorrow, if the price returns to the 90.00 range, the next move towards 90.50 can be considered. However, if this level is breached, the uptrend will be confirmed. In short, this is the current outlook. Wishing everyone profitable trading!