NZDJPY SELL FX:NZDJPY
The NZDJPY currency pair has continued to show strength as it tests the highs on the monthly time frame. The momentum appears to be in favor of the buyers on the long-term chart. However, on the 4-hour chart, there is a possibility of a pullback to the 78.6 level to retest an inverse head and shoulders pattern. This pattern suggests that the price could potentially continue its upward movement after the pullback if price rejects at the 78.6.
Alternative Scenario:
At the moment, the .50 Fibonacci retracement level is a crucial support level in the market. If the price manages to stay above this level, it is likely that we may see a potential retest of the previous highs or even a breakthrough beyond them. This level is critical for traders and investors to keep a close eye on as it could determine the future direction of the market.
