NZD/JPY 4-Hour Timeframe Analysis
The NZD/JPY pair has been in a downtrend, showing a semi-consolidation phase on the 4-hour timeframe. A minor key resistance level at 86.500 has been established, where price initially attempted a breakout but later reversed, likely as a liquidity grab to trigger stop losses.
Currently, price is trading within a liquidity zone, and our strategy is to wait for a confirmed breakout above 86.500. A 4-hour candle close above this level would confirm bullish momentum, at which point we will look for a buy limit order at 86.900, anticipating further upside.
Key Technical Levels
🔹 Minor Key Resistance: 86.500 (Breakout Confirmation Level)
🔹 Buy Limit Entry: 86.900
🔹 Stop Loss (SL): 85.700
🔹 Take Profit (TP): 89.710 (Next Resistance Level)
Fundamental Insight
📈 NZD Strength:
Strong Economic Performance: New Zealand's economy continues to show resilience, with positive trade balance data and GDP growth, supporting the NZD.
Hawkish RBNZ: The Reserve Bank of New Zealand (RBNZ) remains committed to maintaining higher interest rates to control inflation, increasing demand for NZD.
📉 JPY Weakness:
Dovish Bank of Japan (BoJ): The BoJ maintains an ultra-loose monetary policy, keeping interest rates negative, which weakens JPY.
Lack of Intervention: While Japanese officials have expressed concerns about JPY depreciation, no concrete intervention has taken place, allowing further weakness.
Risk-On Market Sentiment: Investors are moving away from safe-haven assets like JPY, favoring higher-yielding currencies such as NZD.
Conclusion
Both technical and fundamental factors support a bullish outlook for NZD/JPY. A confirmed breakout above 86.500 could trigger further upside momentum, aligning with the broader fundamental landscape favoring NZD strength over JPY weakness.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
The NZD/JPY pair has been in a downtrend, showing a semi-consolidation phase on the 4-hour timeframe. A minor key resistance level at 86.500 has been established, where price initially attempted a breakout but later reversed, likely as a liquidity grab to trigger stop losses.
Currently, price is trading within a liquidity zone, and our strategy is to wait for a confirmed breakout above 86.500. A 4-hour candle close above this level would confirm bullish momentum, at which point we will look for a buy limit order at 86.900, anticipating further upside.
Key Technical Levels
🔹 Minor Key Resistance: 86.500 (Breakout Confirmation Level)
🔹 Buy Limit Entry: 86.900
🔹 Stop Loss (SL): 85.700
🔹 Take Profit (TP): 89.710 (Next Resistance Level)
Fundamental Insight
📈 NZD Strength:
Strong Economic Performance: New Zealand's economy continues to show resilience, with positive trade balance data and GDP growth, supporting the NZD.
Hawkish RBNZ: The Reserve Bank of New Zealand (RBNZ) remains committed to maintaining higher interest rates to control inflation, increasing demand for NZD.
📉 JPY Weakness:
Dovish Bank of Japan (BoJ): The BoJ maintains an ultra-loose monetary policy, keeping interest rates negative, which weakens JPY.
Lack of Intervention: While Japanese officials have expressed concerns about JPY depreciation, no concrete intervention has taken place, allowing further weakness.
Risk-On Market Sentiment: Investors are moving away from safe-haven assets like JPY, favoring higher-yielding currencies such as NZD.
Conclusion
Both technical and fundamental factors support a bullish outlook for NZD/JPY. A confirmed breakout above 86.500 could trigger further upside momentum, aligning with the broader fundamental landscape favoring NZD strength over JPY weakness.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.