- NZD/JPY is a mixed bag across the time frames.
- Bulls seeking a daily expansion while the monthly is overstretched.
The price is stalling on the upside, as seen on the weekly and daily charts. However, there has already been a 50% mean reversion of the daily bullish impulse.
The following is a top-down analysis that illustrates the various biases per time frame.
The monthly chart shows that te price is due for a downside correction of the bullish impulse.
The weekly chart is in the process of a significant downside correction and there is still room to go until a 38.2% Fibonacci has been met.
However, the price has dropped to test a 50% mean reversion level, albeit with a naked 61.8% Fibonacci. This means there is still scope for a test of the level which meets dynamic support.
The price is not in a bullish enough position until it has broken the overhead resistance.
However, dynamic support is expected to give rise to an upside continuation.