NZD/JPY Price Analysis: Bears hang in there by the skin of their big-teeth
- NZD/JPY was a close call to breaking upside resistance structure.
- Bears remain committed to the downside analysis despite NZD/USD's rally.
When trading a technical analysis based trading plan, you stick to it - that is the rule of thumb.
However, risk management can allow for some influence and in the case of NZD/JPY, it is quite remarkable that the cross managed to stay below a critical structure despite the rally in the Kiwi.
Bears really must be thankful to the FX gods that the yen picked up a huge portion of the outflows from the US dollar as it has kept the position from being so deep in a drawdown that the target should be moved to breakeven or the position reduced.
Instead, NZD/JPY has kept within the confines of the risk management and stayed below the trendline resistance.
NZD/JPY has now moved in the direction of the trade and back into profit.
However, considering the double bottom support that has made, the position can be reduced as it is now a riskier position until 69.20 is broken where the position can be added to again.
Here is a recap of the prior day's analysis which rhymes with the latest price action:
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Current scenario
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Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
