NZDJPY Poised for Pullback: Bearish Engulfing Pattern Sets Stage for Downside Play

Candlestick pattern- Bearish Engulfing

NZDJPY pared most of its gains on a weak New Zealand dollar. The intraday trend is bearish as long as the resistance at 88.85 holds.  The pair hit a high of 88.85 yesterday; it now trades at about 88.12.

Oscillators and moving averages to forecast the trend of NZDJPY

CMP- 88.078

EMA (4-hour chart)

55-EMA- 87.72

200-EMA- 87.405

365-EMA- 87.289. The pair trades above the short (55 EMA)  and long-term moving average.

Major support- 87.80. Any breach below will drag the pair down to 87.40/87.20/86.65/85.37/84.45/84.

Major resistance - 88.50. Any break above 88.50 confirms minor bullishness, a jump to 88.85/89/90.

Indicator (4-hour chart)

CCI (50)- bullish

Average directional movement Index- Neutral. All indicators confirm a Mixed  trend.

It is good to sell on rallies around 88.28-30 with SL around 88.85 for TP of 87.21/86.60.