TECHNICAL BOUNCE EXPECTED ON NZDJPY

7月29日

Despite a drop of almost 10% from the all-time high of 99 reached on 10 July 2024, the pair's long-term trend remains bullish.

However, a break of the medium-term uptrend line could open the door to a much larger correction and threaten the uptrend.

The price is currently in a key support zone at 90.186 - 90.763. This zone has been worked by both buyers and sellers between 9 January 2024 and 21 April.

Technically, we can expect a buying bounce that could take the price back to the uptrend line for a perfect technical pullback.
With the RSI at 12.60 at the time of writing, a technical rebound could also be confirmed by the RSI returning to its neutral zone. However, it would be better to wait for a buy signal on the smaller TFs before confirming this move.

On the other hand, a confirmation of a break of the support zone would allow the sellers to take control and drive the price even lower towards the 88 level.

Maxime Dominguez - Analyst for Activtrades

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