Hello guys,
Just to alert you on this potentially good buy set up on this currency pair. One thing to note is that this pair is at its all time low now, trending at around 1.77 levels. Remarkably, tomorrow we have the Feds and BoJ meeting so expect volatility which can go either way. Analysts are expecting an unchanged fund Rate while BoJ is expected to delve deeper into negative rate territory with even purchase of more risky assets accompanied by more expansionary fiscal steps. Anything less than that, the Yen gains and trends lower and therefore NZDJPY could go lower than 69.0 levels.
Technically, without checking any fundamentals now, is the fact that on the daily chart, this pair is on the support zone on a descending triangle and a break below this could be inevitable but then today’s disappointing GDT data came in as a disappointment and we saw price reversing. Coincidentally, price trended higher on the 4 HR chart at this pair’s all time low as visible in the 4HR chart and on the daily chart, price seems to be reversing from the support of this obvious bear flag. Note that strong double bar reversals on the 4HR chart bouncing right at the support with a 95% strong bullish divergence on the daily chart.
I will recommend a buy in the 4HR chart now and wait for a confirmation tomorrow if you like to trade the daily chart. As always, patience pays no need to hurry to take this trade neither should you be late, wait for clear bulls control then buy on Thursday as you ride on the tide. Tomorrow expect consolidation horizontally with a bullish bias as volumes dry up in anticipation on those weekly fundamentals.
A clear break above 1.85-1.9 could trigger an official buy and you ride with the tide.
Have a good trading day.

GBPNZD 4HR chart-20.09.2016

Source: Dalmas Ngetich

GBPNZD Daily chart-20.09.2016

Source: Dalmas Ngetich

GBPNZD Monthly chart-20.09.2016

Source: Dalmas Ngetich

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