- NZD/JPY contrast top end of converging pattern
- Updatedtargets cancellation levels
- Looking for trade ideas? Check out DailyFX’s 2016 4Q Projections
Chart Created Using TradingView
Broader Technical Outlook: NZD/JPY has been in converging given a Brexit sell-off with a span now coming connection insurgency during a top end of a pattern. The insurgency operation extends into a Sep high-day tighten during 75.52 and a evident long-bias is during risk while subsequent this threshold.
Notes: An descending pitchfork fluctuating off a Sep / Oct lows has continued to conclude cost movement with a 75% line serve highlighting near-term Fibonacci insurgency during 75.07/25. Note that a span has been imprinting bearish dissimilarity into these highs and leaves a allege exposed with a mangle subsequent a median-line changeable a concentration towards 74.27 73.68.
From a trade standpoint, we would be looking for an depletion high (fade strength) while subsequent constructional resistance. A mangle subsequent a embedded pitchfork is indispensable to change a broader concentration behind towards simple trendline support fluctuating off a Aug lows now ~73.00. A tighten above 75.52 would consecrate a dermatitis with such a unfolding eyeing targets during 76.06, 76.37 a 100% prolongation during 76.52.
A entertain of a daily normal loyal operation (ATR) yields distinction targets of 25-28 pips per scalp. The mercantile calendar is rather still until subsequent week with trade change total from both counterparts Japanese CPI on tap. Continue tracking this setup and some-more via a week- Subscribe to SB Trade Desk and take advantage of a DailyFX New Subscriber Discount.
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Relevant Data Releases
Other Setups in Play:
- EUR/JPY Targeting Key Support Ahead of ECB
- USD/CAD during Risk for Further Losses on Wait-and-See BoC
- AUD/NZD Approaches Key Slope of Influence- Longs during Risk Sub-1.0786
- Webinar: Is a Dollar Rip Ready to Slip?
- DAX Battle Lines Drawn as Index Looks to Regain 2016 Losses
—Written by Michael Boutros, Currency Strategist with DailyFX
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