NZD/JPY was depreciating during last two months and has formed a falling wedge pattern on the 4H chart. The formation has 76% quality along with 75% magnitude within 112 bars.
The price decreased after it had been capped off the resistance level around 68.89, and fell to the 65.58 support level, forming the pattern. The Stochastic indicator pierced its 20% oversold level, which shows pair is oversold, and increases the possibility of a bullish rebound. If the price bounces off the support level at 65.24/35, the first target for long traders could be around 65.97, where the present resistance level stands.
According to the technical indicators, the pair's bias on 4H and 1D timeframes remains bullish, while on 1W chart it is neutral. The Alligator indicator shows that present trend is bullish. If the pair breaches the support level around 65.43, the initial target for short sellers could be around 65.05.