Based on technical analysis the bullish trend is present in NZD/JPY currency pair, 4 hours time frame based on NZD/JPY Elliott Wave Weekly Forecast. As I have forecasted few hours ago, the price of NZD/JPY pair is going to rise up now to prints a Bullish Zig Zag corrective Elliott wave pattern and traders should look for a buy trade. So, all those Forex traders who have followed my Elliott wave forecast have made the right decision as price has ascended.
Strong key support level is present at 67.92 price area which is the termination point of Bullish Impulse wave a leg. In my judgment, price action in NZD/JPY currency pair is now going to turn side and then rise up more to complete the bullish Zig Zag wave c Elliott wave leg. So, market is going to rise up more and then expects a short term top in price action as well after that. Based on Elliott wave forecast, the current Bullish trend is part of a Bullish Zig Zag corrective Elliott Wave pattern, wave 2 leg in higher time frame.
Currently, Bullish corrective Elliott wave pattern wave c looks in-complete. So, a good idea is to look for a possible buy trading chance to join an up trend around 68.13 price area. However; if the price of NZD/JPY currency pair breaks below 67.92 vital support level then up trend is going to end. In such a market scenario, it would be best not to trade the Forex market and re-do the NZD/JPY Elliott wave analysis in four hours chart.
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Now, at this point; I must acknowledge that the trend is bearish in higher time frame of NZD/JPY currency pair.
Below is the daily chart of NZD/JPY pair with my Elliott wave forecast which shows us a big picture and a well started bearish trend as well.
To me; price has printed Bearish Impulse wave 1 leg. Now, price action is rising up to complete the Bullish Zig Zag wave 2 leg. So, now market is rising up on a short term basis to complete the bullish Zig Zag . Wave 2 is the last and final rise in price action and market is going to prints a top after that. Next, expect bearish impulse wave 3 leg. Within the Bearish Impulse wave Elliott pattern, all sub-waves must sub-divides into 5, 3, 5,3 and 5 waves pattern.
The following Elliott Wave Bearish Impulse wave pattern diagram shows us a completed Bearish Impulse wave pattern within the frame work of Elliott wave principle.
The Bearish Impulse Wave pattern of the Elliott wave principle shows that how price action does not moves in a straight line fashion but in a series of lower swing highs and lower swing lows. Bearish Impulse Elliott wave pattern in a down trending market could be seen inside the above image. The figure shows what a Bearish Impulse Elliott wave pattern looks like. If a trader knows what a Bearish Impulse Wave pattern looks like, then it would become much easy for a currency trader to actually analyze the Forex charts and make a trading decision as well.
A Bearish Impulse wave consists of total five waves. Three bearish leg in the favour of a down trend and two bullish corrective Elliott wave patterns, against the down ward market trend. We use numbers to label impulse wave 1, 2, 3, 4 and 5 and inside wave 2 and 4, we use English alphabets to label corrective wave structures. Please take a note that Bearish Impulse Wave pattern is a motive Elliott wave pattern which appears at a trending market environment and moves in the favour of larger down ward market trend.
Based on my NZD/JPY technical analysis using Elliott Wave in daily chart, we have got an in-complete Bullish corrective wave 2 leg and price action is now rising up to prints bullish Zig Zag wave 2 leg. However; it is possible if price breaks above blue colour resistance line then forecast will become in-valid. Now, price action is probably going to move sideways and then rise up more to prints a bullish corrective Zig Zag leg which is going to complete Bullish wave 2 corrective Elliott wave pattern. To me; in four hours chart of NZD/JPY currency pair the bullish leg – wave c Zig Zag corrective pattern which is part of a higher degree wave 2 leg in daily chart is just a bullish pull back in a down trend leg as mentioned above as wave c corrective wave pattern inside a four hours price chart.
Strong key resistance level is present at 73.22 price area in NZD/JPY daily chart. So, I expect market to first move up in next coming trading days and then may be starts the decline. So, in my opinion market is going to remain bearish overall and on a medium to long term basis, expects a bearish leg in market. Next, market is probably going to prints a long term bottom after that in NZD/JPY currency pair, in daily chart.
Now, when an existing Bearish Elliott Wave Weekly Forecast in NZD/JPY is going to fail?
Well, the forecast is good for about next two weeks’ time and price should stays below 73.22 resistance area in daily time frame to keep the down trend alive. A clear bullish break out in price action above 73.22 resistance area will end the down trend and bearish Elliott Wave Weekly Forecast; in such a market scenario, it would be best not to trade the market and re-analyze NZD/JPY daily chart.
Based on NZD/JPY Elliott Wave Weekly Forecast the trend is down in daily chart and a good idea is to look for a sell trade around 71.21 price area, as price is going to falls down more towards 65.49 price area but a clear bullish break out in price action above 73.22 vital resistance area will end the down trend. Based on Elliott wave analysis, on a medium term basis, it is a bullish trend in NZD/JPY 4 hours time frame and a good idea is to take a buy trade around 68.13 price level and price is probably going to rise up towards 69.23 price level. However; if the price of NZD/JPY currency pair breaks below 67.92; vital support level then bullish trend is going to end. We recommend trading with these top-rated brokers when using our signals/analyses/forecasts as they handle your trades quicker and more efficiently with very low spreads and most of them have high trade execution rate.
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