- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.