My picks: Flat NZD/JPY
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
Following the short NZD/JPY recommendation from the previous week, the sell entry from 58.10 reached my target at 55.37 at the beginning of the week, and I may continue to range trade the pair as the kiwi-yen continues to hold below 60.60-70 (78.6% Fib of 44.23-65.32). However, the 20 and 50 Day moving averages looks like they’re about to cross above the 200-Day over the week, so I will sit on the sidelines for the time being until we get confirmation before entering another trade for the pair. Nevertheless, expectations for a 25bp rate cut by the Reserve Bank of New Zealand should continue to hold the pair within a broad range over the near-term however, the spike in market sentiment may continue to drive the New Zealand dollar higher against its major counterparts as investors raise their appetite for risk
