The NZDJPY has moved lower after finding resistance near 74.10, and may break to the downside later this week.
Currency Pair: NZDJPY
Short-Term Bias: Short
Chart: 60 Min Chart
Analysis Update
The kiwi-yen has bounced higher during the overnight session to re-test 73.00 for resistance, but looks to be losing momentum and may fall lower over the next few hours. The pair continues to hold within a tight range between 71.68 (38.2% Fib level of 67.20-78.95) and 74.41 (61.8% Fib level of 67.20-78.95), and I expect the underlying downtrend to drag the pair lower by the end of the week. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The NZDJPY has moved lower after finding resistance near 74.10, and may break to the downside later this week. After failing to cross over 74.42 (61.8% Fib level of 67.20-78.95), the kiwi-yen has within a tight range between 71.70 (38.2% Fib level of 67.20-78.95) and 74.41 (61.8% Fib level of 67.20-78.95). Over the next few hours, I expect the underlying downtrend to lead the pair towards 71.50, and may work its way lower to test the 9/16 low of 67.21 for support over the following weeks. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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