- NZD/JPY bulls taking back control on the daily chart.
- The monthly chart, however, is overextended to the upside.
NZD/JPY is on the brink of an upside extension while price holds above the daily 61.8% Fibonacci and the 10-day moving average.
The following is a top-down analysis that illustrates the market's stricture and bullish bias.
The price is overextended on the monthly chart and is due to a correction:
However, while at least a 38.2% Fibonacci retracement is not out of the question, the price is holding above a significant support level.
As can be seen on the weekly chart, the price tested the support with a significant rejection followed by a follow-through to the upside and a new high.
This leaves the bulls in control.
From a daily perspective, the price is offering a bullish bias as well following a meaningful correction to the 61.8% Fibonacci.
So long as the 10-day moving average holds, the price would now be expected to extend higher from here and opportunities could be found on the lower time frames.
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