NZD/JPY 4-Hour Timeframe Analysis
The NZD/JPY pair is currently exhibiting signs of sustained bearish momentum following a period of accumulation. On the 4-hour timeframe, the price continues to form a series of lower highs (LH) and lower lows (LL), reflecting a well-defined downtrend structure.
A key technical area of interest is the 85.000 level, which previously acted as a minor support zone. After breaching this level, the price accumulated a significant volume of sellers. However, the downward movement stalled, leading to a liquidity grab—a scenario where price temporarily moves higher to trigger stop-losses placed by early sellers before reversing.
Following this liquidity hunt, the market structure suggests a potential transition into a distribution phase, where price may continue to decline if key technical levels are respected. We are currently observing whether price will revisit the 84.900 region for another retest before a potential continuation to the downside.
A confirmed 4-hour candle close below 85.000 would further support the bearish outlook and indicate continued selling pressure toward lower support levels.
Key Technical Levels:
Key Resistance: 85.000 (Previous Support Turned Resistance)
Observation Zone: 84.900 (Potential Retest Area)
Next Support Target: 82.190 (Next Significant Support Level)
Fundamental Insight:
The NZD faces continued pressure due to weak economic data, a dovish stance from the Reserve Bank of New Zealand (RBNZ), and concerns about slowing economic growth. Recent reports indicate that New Zealand’s business confidence has softened, raising speculation that the RBNZ may hold off on future rate hikes or even consider easing policies to support the economy.
Meanwhile, the JPY is gaining strength amid rising safe-haven demand due to global economic uncertainty and increased speculation that the Bank of Japan (BoJ) may soon adjust its ultra-loose monetary policy. Additionally, Japan’s improving inflation outlook has increased expectations for a policy shift, which could further support the yen and drive NZD/JPY lower. This divergence in monetary policy between the two central banks enhances the case for continued bearish pressure on the pair.
📌 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 is currently exhibiting signs of sustained bearish momentum following a period of accumulation. On the 4-hour timeframe, the price continues to form a series of lower highs (LH) and lower lows (LL), reflecting a well-defined downtrend structure.
A key technical area of interest is the 85.000 level, which previously acted as a minor support zone. After breaching this level, the price accumulated a significant volume of sellers. However, the downward movement stalled, leading to a liquidity grab—a scenario where price temporarily moves higher to trigger stop-losses placed by early sellers before reversing.
Following this liquidity hunt, the market structure suggests a potential transition into a distribution phase, where price may continue to decline if key technical levels are respected. We are currently observing whether price will revisit the 84.900 region for another retest before a potential continuation to the downside.
A confirmed 4-hour candle close below 85.000 would further support the bearish outlook and indicate continued selling pressure toward lower support levels.
Key Technical Levels:
Key Resistance: 85.000 (Previous Support Turned Resistance)
Observation Zone: 84.900 (Potential Retest Area)
Next Support Target: 82.190 (Next Significant Support Level)
Fundamental Insight:
The NZD faces continued pressure due to weak economic data, a dovish stance from the Reserve Bank of New Zealand (RBNZ), and concerns about slowing economic growth. Recent reports indicate that New Zealand’s business confidence has softened, raising speculation that the RBNZ may hold off on future rate hikes or even consider easing policies to support the economy.
Meanwhile, the JPY is gaining strength amid rising safe-haven demand due to global economic uncertainty and increased speculation that the Bank of Japan (BoJ) may soon adjust its ultra-loose monetary policy. Additionally, Japan’s improving inflation outlook has increased expectations for a policy shift, which could further support the yen and drive NZD/JPY lower. This divergence in monetary policy between the two central banks enhances the case for continued bearish pressure on the pair.
📌 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.