NZD/JPY Price Analysis: Sellers moved in, as a bearish-pennant emerges
- NZD/JPY is subdued as the Asian session begins, following the formation of a doji, portraying indecision amongst traders.
- Bearish pennant in the NZD/JPY 1-hour chart warrants downward pressure lying ahead.
NZD/JPY failed to gain traction upward/downwards on Wednesday’s session, and meanders at around this week’s lows, as Thursday’s Asian Pacific session begins. At the time of writing, the NZD/JPY exchanges hands at 82.87, almost flat.
The NZD/JPY daily chart portrays the cross-currency pair as neutral to slightly downward biased, though it failed to gain traction on Wednesday. A doji surfaced nearby the low of the week of 82.65, which could exacerbate a consolidation in the near term. If that scenario plays out, the NZD/JPY will trade within the 82.65-83.00 for the remainder of the session unless a catalyst triggers the NZD/JPY to break above/below the range.
Upwards, the NZD/JPY first resistance would be the 20-day Exponential Moving Average (EMA) at 83.44, ahead of the 200-day EMA at 83.85. On the downside, the NZD/JPY’s next support would be the lows of the week at 82.65, followed by the psychological 82.00 mark
In the short term, the NZD/JPY1-hour chart portrays the formation of a bearish-pennant, which suggests downward action lies ahead. A break below the pennant bottom-trendline will pave the way for further losses and, on its first leg-down, would slide toward the S1 daily pivot at 82.62.
The NZD/JPY downtrend’s next stop would be the S2 pivot at 82.44, ahead of the S3 daily pivot at 82.24.
NZD/JPY: One-hour chart
NZD/JPY key 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.
