Riding the Waves: NZD/JPY's Rollercoaster Journey
Technical Analysis
Technical analysis also supports a long position in NZD/JPY:
Market Bottom Formation: Recent technical analysis indicates that the short-term downtrend has halted, and the price is starting to create a market bottom. A recent market high has been broken, suggesting a potential bull run .
Key Structure Levels: The pair is about to retest a key structure level of 95.24, implying a high likelihood of a move up .
Economic Calendar and Upcoming Events
Upcoming events on the economic calendar can also influence the NZD/JPY pair:
Japan’s FY 2024/2025 Annual Wage Negotiations: Preliminary results on March 15 could impact the JPY .
BOJ’s Monetary Policy Outcome: Scheduled for March 19, this event could provide further insights into Japan's economic stance .
Fed FOMC Meeting: The release of the latest dot plot on March 20 could influence global market sentiment .
Conclusion
Longing NZD/JPY is supported by a combination of high-interest rate differentials, strong macroeconomic indicators, favorable technical analysis, and institutional investor sentiment. While risks remain, the overall outlook suggests that a long position in NZD/JPY could be a profitable strategy.
Technical analysis also supports a long position in NZD/JPY:
Market Bottom Formation: Recent technical analysis indicates that the short-term downtrend has halted, and the price is starting to create a market bottom. A recent market high has been broken, suggesting a potential bull run .
Key Structure Levels: The pair is about to retest a key structure level of 95.24, implying a high likelihood of a move up .
Economic Calendar and Upcoming Events
Upcoming events on the economic calendar can also influence the NZD/JPY pair:
Japan’s FY 2024/2025 Annual Wage Negotiations: Preliminary results on March 15 could impact the JPY .
BOJ’s Monetary Policy Outcome: Scheduled for March 19, this event could provide further insights into Japan's economic stance .
Fed FOMC Meeting: The release of the latest dot plot on March 20 could influence global market sentiment .
Conclusion
Longing NZD/JPY is supported by a combination of high-interest rate differentials, strong macroeconomic indicators, favorable technical analysis, and institutional investor sentiment. While risks remain, the overall outlook suggests that a long position in NZD/JPY could be a profitable strategy.
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