NZD/JPY continues to rise inside the clear Rising Wedge chart pattern which was recently identified by Autochartist on the 30-minute charts. Autochartist measures the quality of this Rising Wedge at the 5-bar level – which reflects the slow Initial Trend (4 bars), low Uniformity (one bar) and near-maximum Clarity (9 bars). NZD/JPY is expected to rise further inside this chart pattern – in line with the earlier upward reversal from the strong support area shown below.
As can be seen from the daily NZD/JPY chart below, the price earlier reversed up from the major support area lying between the long-term support level 76.20 (which has been steadily reversing the pair from April) and the lower daily Bollinger Band. The proximity of this support area increases the probability NZD/JPY will continue to rise inside this Rising Wedge.
