NZD/JPY Price Analysis: Downward pressured as a bearish harami emerged, at around 85.00


  • The confluence of the 20 and 100-day EMAs, around 85.00, capped the NZD/JPY rally.
  • A bearish harami candle chart pattern in the NZD/JPY daily chart could exacerbate a fall toward 82.50.
  • NZD/JPY: To face solid support around the 200-day EMA, which, once it gives way, further downside is expected.

The NZD/JPY continued its downtrend after plummeting more than 300 pips following the Bank of Japan (BoJ) adjustment of its Yield Curve Control (YCC) on the 10-year JGB to 0.50%, which bolstered appetite for the Japanese Yen (JPY) to the detriment of most G8 currencies. At the time of writing, the NZD/JPY is trading at 84.34, slightly above the December 29 daily low of 84.20.

NZD/JPY Price Analysis: Technical outlook

After hitting a weekly high of 84.98, the NZD/JPY formed a bearish harami candle chart pattern, which usually has a downward bias. Nevertheless, it should be said that the 200-day Exponential Moving Average (EMA) lies close to current exchange rates and could be a difficult hurdle to surpass at 84.04, which, once cleared, will exert downward pressure on the NZD/JPY. Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest sellers are in charge, though the RSI is almost flat, and the RoC continues to approach its neutral level.

If the NZD/JPY clears the 200-day EMA, that could open the door for further losses. Hence, the NZD/JPY first support would be the December 28 low of 83.66. Once cleared, the NZD/JPY might fall toward the 83.00 figure, closely followed by the December 23 daily low at 82.52.

NZD/JPY Key Technical Levels

NZD/JPY

Overview
Today last price 84.37
Today Daily Change -0.34
Today Daily Change % -0.40
Today daily open 84.71
 
Trends
Daily SMA20 85.82
Daily SMA50 85.94
Daily SMA100 85.14
Daily SMA200 84.79
 
Levels
Previous Daily High 84.99
Previous Daily Low 83.67
Previous Weekly High 87.36
Previous Weekly Low 82.53
Previous Monthly High 87.46
Previous Monthly Low 83.86
Daily Fibonacci 38.2% 84.49
Daily Fibonacci 61.8% 84.17
Daily Pivot Point S1 83.92
Daily Pivot Point S2 83.14
Daily Pivot Point S3 82.6
Daily Pivot Point R1 85.24
Daily Pivot Point R2 85.78
Daily Pivot Point R3 86.57

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD keeps range below 1.0750 ahead of US data, Fedspeak

EUR/USD keeps range below 1.0750 ahead of US data, Fedspeak

EUR/USD is consolidating its mild recovery below 1.0750 in the European session on Tuesday. Risk flows remain and exert additional downside pressure on the US Dollar while Euro traders reposition ahead of Sunday's French election. Mid-tier US data and Fedspeak are on tap.

EUR/USD News

GBP/USD recovers to 1.2700 as US Dollar weakness extends

GBP/USD recovers to 1.2700 as US Dollar weakness extends

GBP/USD is recovering to test 1.2700 in the European morning on Tuesday. Extended US Dollar weakness due to improved market mood, aids the pair's latest uptick. Traders look to the US sentiment data and Fed speeches for further impetus, as the UK calendar remains data-quiet. 

GBP/USD News

Gold moves within familiar territory as traders await further cues

Gold moves within familiar territory as traders await further cues

Gold (XAU/USD) trades in familiar territory in the $2,320s on Tuesday, amid a subdued market mood after a mixed session for Asian stocks and investor loss of appetite for tech stocks on Monday. 

Gold News

Bitcoin breaks below descending wedge, finding support on key level

Bitcoin breaks below descending wedge, finding support on key level

Bitcoin spot ETFs record a $174.5 million outflow on Monday, marking seven consecutive days of continuous decline. Mt.Gox announces Bitcoin and Bitcoin Cash repayment to creditors in July.

Read more

Canada CPI Preview: Inflation expected to continue easing in May

Canada CPI Preview: Inflation expected to continue easing in May

The Canadian CPI is expected to rise at an annual rate of 2.6% in May, a tad slower than a 2.7% increase in April. On a monthly basis, the CPI inflation is seen easing to 0.3% in the same period after April’s 0.5% growth. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures