NZD/JPY Price Analysis: Rally capped at Kijun-Sen, at around 88.00
- NZD/JPY rose from daily lows of 87.03 to test 88.00, though the rally was halted by the Kijun-Sen at 88.49.
- On the upside, resistance levels are at 88.00, the Kijun-Sen at 88.49, and the October 11 high at 89.93.
- Key support levels include the top of the Kumo at 87.82, the bottom of the Kumo at 87.00, and the September 5 swing low at 86.30.
The NZD/JPY jumped from daily lows of 87.03, climbing past the 88.00 figure on Tuesday. However, the advancement was capped by the Kijun-Sen at 88.49, and a seven-month-old upslope support trendline turned resistance, which pushed prices toward the top of the Ichimoku Cloud (Kumo). The pair is trading at 87.89, down 0.48%.
The daily chart portrays the pair as neutral to downward biased, about to break inside the Kumo, which could pave the way for further downside. If NZD/JPY falls below the top of the Kumo at 87.82, that would drive the price towards the bottom of the Kumo at 87.00 before challenging the September 5 swing low of 86.30.
On the contrary, NZD/JPY buyers could remain hopeful if the pair climbs back above the 88.00 figure. A breach of the latter would expose the Kijun-Sen at 88.49, followed by 89.00. A decisive break would expose the October 11 high at 89.93.
NZD/JPY Price Action – Daily chart
NZD/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
