NZDJPY Bearish Flag: Retest Complete, Targeting 82.60NZDJPY is currently trading at 86.60, with a target price of 82.60, indicating a potential downward movement of 300+ pips. The pair is forming a bearish flag pattern, which typically follows a strong downtrend and is followed by a period of consolidation. This pattern suggests that after the breakout and a successful retest of the lower trendline, the price could continue its decline toward the 82.60 target.
Technically, a bearish flag is often seen as a continuation pattern, signaling that the downtrend is likely to resume after the consolidation phase. The successful retest of the breakout point confirms the market’s readiness to move lower. In this case, if NZDJPY breaks below the support level, it could accelerate the move toward the 82.60 target.
Fundamentally, the New Zealand dollar has been under pressure due to a weaker global risk appetite and softer economic data. In contrast, the Japanese yen benefits from its status as a safe-haven currency, particularly during times of market uncertainty. These fundamental factors may continue to support a bearish move for NZDJPY, especially if global market sentiment remains cautious.
In summary, the bearish flag pattern on NZDJPY suggests further downside potential, with a target of 82.60. Traders should watch for confirmation of the bearish continuation after the retest of the breakout level, as well as monitor global risk sentiment and economic data from both New Zealand and Japan.
