The NZD/JPY exchange rate has been constrained by an eight-month descending channel against the Japanese Yen. During this period of decline, the currency pair has formed several patterns. The most recent of which is the dotted junior down channel which was formed on January 22.
In the four-hour time frame, the currency exchange rate hit the 50.00% Fibonacci retracement level and reverse south. This retracement can be measured by connecting the low at 75.62 and the high at 78.61.
Technical indicators suggest that the pair is likely to continue its bearish movement until it finds the next support level at 76.14. However, the price has to breach the 55– hour simple moving average which is located at 76.53.
