NZD/JPY - Bulls are gearing up to push the price up

3 Mac

Hi guys ,we are looking into NZD/JPY today, a great follow up hence the price reached a very crucial Support Area, analysis made on 3H time frame.

The NZD/JPY currency pair is showing signs of potential bullish momentum, indicating that a price increase may be on the horizon.

Key Technical Indicators Suggest Upside Potential:

Support Levels Holding Strong: The pair has approached a key support zone, historically acting as a strong demand area where buyers tend to step in. This suggests a possible price reversal to the upside.
Oversold Conditions: Recent downward movements have pushed NZD/JPY into oversold territory on the RSI (Relative Strength Index), which often signals an upcoming reversal as traders look to capitalize on discounted prices.
Bullish Divergence: A divergence between price action and momentum indicators, such as the MACD or RSI, suggests that selling pressure may be weakening and a bullish move could be imminent.
Trendline Retest and Potential Breakout: The price is currently testing an important trendline, and a successful breakout above this level could signal a strong rally toward recent resistance zones.
Fundamental Factors Favoring NZD Strength:

Improving Risk Sentiment: As global market sentiment shifts toward risk-on assets, the New Zealand dollar (NZD) tends to benefit due to its correlation with commodity prices and risk appetite.
Interest Rate Differentials: If New Zealand maintains relatively higher interest rates compared to Japan’s ultra-loose monetary policy, the carry trade appeal for NZD/JPY remains strong, supporting long-term upside potential.


Entry: 84.550
Target 1: 85.450
Target 2: 86.200
SL: would be below the support area 83.300

4 Mac

Dagangan ditutup: hentian tercapai

SL reached - NZ too weak , if it breaks crucial support level we might look into a further decline.