Bullish sentiment for the Japanese yen has pushed the NZDJPY below key support levels during October, and the downward trend is anticipated to drag the pair lower in the near-term.
Currency Pair: NZD/JPY
Chart: 15 Min Charts
Short-Term Bias: Short
Analysis Update
The NZDJPY has moved higher during the overnight Asia session, but has failed to cross above 61.00, and continues to hold within the descending triangle. If the pair continues to move within the triangle over the next few days, I would anticipate the kiwi-yen to break to the downside, and we may see the pair work its way down towards the 9/18/02 low of 56.72. Meanwhile, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
Bullish sentiment for the Japanese yen has pushed the NZDJPY below key support levels during October, and the downward trend is anticipated to drag the pair lower in the near-term. Just last week, we saw the pair fall 950+ points to touch a low of 57.28, but has retraced its losses to move back above 60.00. Volatile price action for the pair has formed what looks to be like a descending triangle, and I anticipate the kiwi-yen to continue its move to the downside this 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