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NZDJPY back in the Channel?

Market Analysis

NZDJPY, H4 & Daily

The dollar faltered after the mix of data, where income was in line, spending a touch light, and jobless claims slightly lower than expected. Price indicators remained benign, likely the driver of modest dollar losses. USDJPY dipped to 110.45 lows, from 110.60, while NZDJPY ticked slightly up at 78.97, with improved risk taking levels however and a fading of N. Korea tensions seems supporting yen pairs.

The NZDJPY despite the pickup seen up to 79.90 due to geopolitics this week,  seems that has turned again lower and it is ready to continue its downtrend channel seen since  July 17. The NZDJPY is traded for a second consecutive day below the 200-Day EMA, while it is also below 20-Week and 50-Week MA for the last two weeks. However an important key indicator for a trend is the Bollinger bands pattern and the 20-Day MA, in which the pair did not manage to break upwards and therefore it is still moving on the lower Bollinger bands pattern.Therefore a SHORT Daily position was taken, which was triggered by the failure on breaking up the 200-Day EMA and also by the Crossing confirmed yesterday, with 20-Day SMA below 200-Day SMA. The entry was taken at 78.92, with Targets at 78.60  and 78.20 based on daily ATR(14). Support is at 79.50. The RSI is at 35, looking  weak.

 

 

 

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Andria Pichidi

Market Analyst

HotForex

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