On 9/22, I noted that the underlying downtrend for the NZDJPY would lead the pair lower, and anticipated that the pair would work its way down towards the 9/16 low of 67.21.
Currency Pair: NZDJPY Short-Term Bias: Short Chart: 60 Min Chart
Analysis Update
The NZDJPY has moved in our favor over the past few hours, but has bounced back after falling to an intraday low of 57.26. Choppy price action throughout the overnight Asia session suggests increased volatility may move pair may within its current range for the remainder of the trading day, but I anticipate the underlying downward trend to lead the pair lower over the week. In the near-term, I anticipate fading risk sentiment to drag the pair lower, and we may see the pair test the 9/5/02 low of 54.64 for support on its way to the downside. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
On 9/22, I noted that the underlying downtrend for the NZDJPY would lead the pair lower, and anticipated that the pair would work its way down towards the 9/16 low of 67.21. In fact, the kiwi-yen has fallen through this level, and looks to be finding support near 62.41 (21.4% Fib level of 58.76-76.20). We may see the pair move within its current range over the next few hours, but I expect the downward momentum to carry the NZDJPY lower over the week. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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