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
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
