- Risk aversion weighed on risk-perceived currencies, bolstering the safe-haven Japanese Yen.
- Hawkish commentary by Federal Reserve officials kept the New Zealand Dollar pressured.
- NZD/JPY Price Analysis: Double top in the daily chart, targets a fall to 80.50.
The New Zealand Dollar (NZD) dropped on Monday, courtesy of US central bankers reassessing further rate hikes for the next year, alongside dented risk appetite by the Covid-19 crisis in China, triggering riots in the country. Therefore, the risk-perceived NZD/JPY weakened and tumbled by 1.55%. As the Asian session begins, the NZD/JPY is trading at 85.62.
NZD/JPY Price Analysis: Technical outlook
The NZD/JPY daily chart dropped from around 86.70 to 85.60s, exacerbated by the formation of a “double top” chart pattern and the fall below last week’s low of around 86.01. Oscillators led by the Relative Strength Index (RSI) turned bearish, which would open the door for the NZD/JPY to test the 100-day Exponential Moving Average (EMA) at 84.86, followed by the 50-day EMA at 84.52. If the NZD/JPY extends its losses, it will probe the confluence of the November 11 swing low and the 200-day EMA around 83.84/84.00. A breach of the latter would confirm the “double top” and will target a fall.
The NZD/JPY first ceiling level would be the 86.00 mark as an alternate scenario. A breach of the latter will expose the 87.00 mark, followed by the two-month high at 87.45. Once cleared, it will invalidate the double top and pave the way toward the YTD high at 87.86.
NZD/JPY Key Technical Levels
|Today last price||85.6|
|Today Daily Change||-1.31|
|Today Daily Change %||-1.51|
|Today daily open||86.91|
|Previous Daily High||87.01|
|Previous Daily Low||86.46|
|Previous Weekly High||87.46|
|Previous Weekly Low||86.03|
|Previous Monthly High||86.51|
|Previous Monthly Low||80.7|
|Daily Fibonacci 38.2%||86.8|
|Daily Fibonacci 61.8%||86.67|
|Daily Pivot Point S1||86.57|
|Daily Pivot Point S2||86.23|
|Daily Pivot Point S3||86.01|
|Daily Pivot Point R1||87.13|
|Daily Pivot Point R2||87.35|
|Daily Pivot Point R3||87.69|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.