Did you ever feel like you blinked and missed something big? It happens in trading too—just ask anyone who kept their eye on NZD/JPY and missed the longer-term trend line break! While it might seem like the train has left the station, don’t despair just yet. There’s still a flicker of hope if you’re looking to catch a quick retest and ride the wave of potential reversal. In this article, we’ll dive into the intricacies of this currency pair, exploring recent price movements, market sentiments, and strategic entry points. So, let’s roll up our sleeves and analyze this opportunity before it slips away! LEARN MOREMissed the longer-term trend line break on NZD/JPY?
There could still be chance to catch a quick retest if you’re counting on the reversal to gain traction.
Check out this area of interest on the 4-hour time frame:
NZD/JPY 4-hour Forex Chart by TradingView
A combination of risk-off flows on global trade concerns and hawkish Bank of Japan (BOJ) vibes have kept NZD/JPY on a steady downtrend since last month.
The pair had been forming lower highs connected by a falling trend line, before a strong breakout took place a few days back, as New Zealand’s central bank shifted to a less dovish stance.
Can NZD/JPY sustain its trend reversal from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price hit a roadblock on its rally near the 87.00 major psychological mark and R2 (86.99) and appears to be in the middle of a correction to nearby support zones. The Fibonacci retracement tool shows additional levels where Kiwi bulls might be looking to hop in.
