Consolidation began on March 24, after NZD/JPY had tested the key resistance area for the first time. Now, the range has been going on for almost two months and no clear direction has been established yet. In these conditions, it is always best to use Oscillators to capitalize on oversold/overbought markets.
What is clear is that NZD/JPY has very clear support and resistance areas in this range. The support is near 92.00, while the resistance is located near 88.00. The Fibonacci levels applied to a low of 84.03 (back on March 2) and a high of 92.35 (back on April 22) shows that the price is currently rejecting 50% retracement level and a double bottom that has been established prior. The CCI oscillator points up crossed the oversold line from below, signaling on a potential continuation of this consolidation.
Overall, without any signs of a trend, it could be wise to consider baying NZD/JPY at the current revels as it is very close to the key support area. Target should be near the already formed triple top area at the level of 91.72. Only a daily close below 62.8% Fibonacci – S2 (87.22) could confirm the downtrend.
Support: 88.20, 87.22
Resistance: 89.17, 90.40, 9167, 92.35
