The NZDJPY has formed a bullish engulfing bar (BUEB) on the daily price action chart. This BUEB is rejecting a support area and has closed in the upper 1/3 of the engulfing bar. This market is in sideways action at the moment like a lot of Forex pairs with price not in a clear trend either way.
If price can break the engulfing bar high, the next resistance is close overhead in the way of candle lows around 79.10 which could act as the near term resistance. If price can gain momentum and continue to move higher the major resistance looms as the recent highs where we can see this pair has recently formed a 2 bar reversal. It was this 2 bar reversal that tipped this market off into making it’s most recent move lower.
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NZDJPY DAILY CHART | 2 Aug 2013
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