NZDJPY Retests Head and Shoulders Neckline

Written by Justin Bennett

|   Last Updated June 24, 2015

·      June 24, 2015

Written by Justin Bennett 

|   Last Updated June 24, 2015


I mentioned NZDJPY in the weekly forecast, noting to watch for a retest of former support as new resistance. The importance of the level in question was made clear by the head and shoulders pattern that has been developing since February of 2014.

The weekly chart tells the story.

NZDJPY head and shoulders on the weekly time frame

With the pair now retesting the broken neckline we can watch for a bearish rejection on the daily time frame. Such price action could signal a much larger move to the downside.

How large, exactly?

Using a simple measured objective for the head and shoulders we get a price of 75.00. This price also lines up with several lows from 2013 (see chart above). Of course like any long-term objective, it could take weeks or even months before this price is realized.

A daily close back above the neckline would negate the setup and have us standing aside for a better signal to go short.

Summary: Watch for bearish price action on the daily time frame on a retest of the neckline as new resistance. Key support comes in at 84.05, 83.34 and 82.25 with a measured objective of 75.00.

NZDJPY support levels on the daily time frame


Justin Bennett - founder of Daily Price Action

About the author

Justin Bennett started trading in 2002, and let's just say it was a bumpy ride. But in 2010, he had his "aha" moment once he ditched the indicators and focused 100% on price action. Justin has built a following of 100,000+ monthly readers and taught thousands of traders using his simple, no-nonsense approach. He's been highlighted as a top trader by Stocks and Commodities Magazine and regularly featured by Forex Factory next to publications from Bloomberg and CNBC. ...Read More


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