NZD/JPY Price Analysis: Struggles at 86.00, tumbles amid a risk-off mood

Despite a risk-off mood, the New Zealand Dollar recovered some ground vs. the Japanese Yen.
The double-top formation in the NZD/JPY daily chart remains in play.
Short term, the NZD/JPY is headed downwards, eyeing the 85.00 psychological figure.

Christian Borjon Valencia FXStreet

The New Zealand Dollar (NZD) remains bid against the Japanese Yen (JPY) even though a risk-off impulse surrounds the financial market, except for the FX space, with risk-perceived currencies rising. That said, high beta currencies like the NZD are appreciating. Hence, the NZD/JPY is recovering, trading at 85.98, above its opening price by 0.42%.

NZD/JPY Price Analysis: Technical outlook

The NZD/JPY daily chart suggests a double top formation emerged of late, sparked by Monday’s plunge of more than 130 pips, driving the exchange rate towards its weekly lows of 85.42, reached on Tuesday. However, the cross-currency pair bounced toward its daily high of 86.29, and its later retracement below 86.00 could exacerbate a fall to the 200-day Exponential Moving Average (EMA) at 84.10, ahead of the November low of 83.84.

In the near term, the NZD/JPY 4-hour chart portrays the pair tested the 100-EMA around 86.17 three times before diving to the 200-EMA at 85.68. However, the NZD/JPY bounced to the daily pivot point at 85.94, shy of the 86.00 figure, which, once broken, could open the door for a re-test of the 100-EMA. But the Relative Strength Index (RSI) is in bearish territory, and possible deterioration in market mood suggests the path of least resistance is downwards.

Therefore, the NZD/JPY first support will be the 200-EMA at 85.69, which, once cleared, will send the pair diving to the S1 daily pivot at 85.52, followed by the S2 pivot at 85.04.

NZD/JPY Key Technical Levels

NZD/JPY

Overview
Today last price	86.03
Today Daily Change	0.45
Today Daily Change %	0.53
Today daily open	85.58

Trends
Daily SMA20	86.21
Daily SMA50	84.56
Daily SMA100	84.9
Daily SMA200	84.11

Levels
Previous Daily High	87.05
Previous Daily Low	85.5
Previous Weekly High	87.46
Previous Weekly Low	86.03
Previous Monthly High	86.51
Previous Monthly Low	80.7
Daily Fibonacci 38.2%	86.09
Daily Fibonacci 61.8%	86.46
Daily Pivot Point S1	85.04
Daily Pivot Point S2	84.5
Daily Pivot Point S3	83.49
Daily Pivot Point R1	86.58
Daily Pivot Point R2	87.58
Daily Pivot Point R3	88.12

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.

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