Is the Kiwi feeling a bit weary from its downward drift? Or are we simply witnessing an extension of its prolonged plummet? In the intricate world of forex trading, where every little fluctuation can feel as dramatic as a plot twist in a movie, it’s crucial to keep a vigilant eye on currency pairs like NZD/JPY. This article dives into a classic reversal chart pattern that has caught my attention—could this be the moment the Kiwi finds its footing, or is it destined to continue its decline? Strap in as we explore these pivotal market movements and what they may mean for traders watching the NZD/JPY scene unfold! LEARN MOREIs the Kiwi getting tired from its decline?
Or are we about to see a continuation of the longer-term downtrend?
Here’s a classic reversal chart pattern I’m keeping on my radar in case NZD/JPY tests the neckline soon.
NZD/JPY 4-hour Forex Chart by TradingView
This yen pair made a couple of failed attempts to break below the 85.50-86.00 region, creating a double bottom pattern on its 4-hour time frame.
Price seems to be making some headway towards the neckline just slightly below the 87.50 minor psychological mark, and a break above the resistance could complete the reversal formation.
But can NZD/JPY sustain its climb past the neckline?
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 the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Earlier this week, the RBNZ cut interest rates by a massive 0.50% as expected while keeping the door open for further easing. On the flip side, BOJ rate hike speculations keep rising on account of upbeat Japanese growth and trade data.
