NZD/JPY: Trade ideas for July 21
The NZDJPY has fallen to where the 500 EMA (red line), which coincides with the location of the 50.00 Fibo level (87.76). Now this pair is trying to make a bullish rebound to strengthen the bullish trend in the long term. However, as we see in the H4 chart, the NZDJPY is trying to form a higher low pattern.
If NZDJPY manages to make a breakout at the level of 87.30, it's expected to fall to a support level of 86.66 (78.6 Fibo level). On the other hand, a breakout on the resistance level of 88.77, could lead to this pair to perform a consolidation in the bullish trend and go up to the level of 89.68, which is above the 200 EMA (green line).
Trading recommendations: Place buy orders at the current levels with take profits at 88.7 and 89.68. Put your stop loss at the level of 87.60.