NZD/JPY traded higher after if found support at around 77.45 yesterday. That said, although the rate is still trading above the upside support line drawn from the low of the 6th of November, it also remains below yesterday’s peak of 78.30, as well as below the tentative downside resistance line taken from the high of the 4th of December. What’s more, all three of our moving averages have flattened. Therefore, we prefer to adopt a wait-and-see stance for now.
A clear and decisive move above 78.30 could confirm the break above the aforementioned tentative downside line and may signal the resumption of the prevailing uptrend. The bulls could then drive the battle towards the 78.85 obstacle, marked by the highs of the 3rd and 4th of December, the break of which could confirm a forthcoming higher high on the daily chart and would bring the rate into territories last seen back in April. Something like that may allow buyers to push the rate towards the high of the 13th of April, at around 79.60.
On the downside, we would like to see a strong dip below 77.00 before we start examining whether the bears have gained the upper hand, at least in the short run. Such a break could signal the break of the upside line drawn from the low of the 6th of November, as well as the completion of a failure swing top. The rate could then slide towards the 76.30 zone, which provided decent support on the 12th, 13th and 25th of November. Another dip below that area may carry extensions towards the 75.70 territory, which is slightly above the high of the 2nd of November.
Taking a look at our short-term momentum indicators, we see that the RSI rebounded, crossed back above 50, but has now turned slightly down again. The MACD lies fractionally above zero, slightly below its trigger line, and points sideways. These technical studies suggest lack of momentum and support our choice to stand pat for now.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.