NZD/JPY Approaching Brexit High- Constructive Above 74.27
- NZD/JPYconstructive above weekly open
- Updated targets & invalidation levels
Chart Created Using TradingView
Broader Technical Outlook: NZDJPY rebounded last month off a long-term trendline support extending off the 2011 & 2012 lows with daily momentum holding 40-support. The subsequent rally is now probing confluence resistance at 76.30 where the 100% extension of the advance converges on 50% retracement of the December decline & channel resistance.
Today’s close will be important- a failure to do so would leave the immediate long-bias vulnerable. The broader outlook remains constructive while above the initial monthly opening range high at 74.27 with break below 73.56 needed to shift the focus lower. A breach higher targets subsequent resistance objectives at the 200-day moving average at 77.15 and the key 61.8% retracement at 77.97.
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Notes: We mapped out this setup in today’s webinar and the near-term focus remains on this ascending median-line formation off last week’s low. Topside resistance targets are eyed at 76.72 backed by the upper parallel & the Brexit high at 77.69/97. Interim support rests at 75.69 backed by 74.46 with our bullish invalidation level set to 73.40/55 (weekly / monthly opens & median-line support).
The economic docket is rather light from both Japan and New Zealand this week so we’ll be looking for broader market sentiment for cues here. Keep in mind this is a wider-range setup with a quarter of the daily average true range (ATR) yielding profit targets of 42-46pips per scalp. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.
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Relevant Data Releases
Other Setups in Play:
- Webinar: USD Crosses in Focus as Rally Eyes Key Resistance Targets
- USD/CAD Risks Near-term Breakout on NFPs / Canada Employment
- AUD/USD is Constructive - Threatens Resistance Break
- Near-term Setups in AUD, CAD, NZD & USDOLLAR into NFPs
Looking for trade ideas? Review DailyFX’s 2016 3Q Projections
---Written by Michael Boutros, Currency Strategist with DailyFX
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.