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NZDJPY Confirms Above Ichimoku Cloud and Triangle Chart Pattern


Oct.19.2016

NZDJPY Confirms Above Ichimoku

After the third and last presidential debate in the US, NZDJPY confirms above Ichimoku cloud while USD/JPY heads back towards it. How can we put the politics and crowd psychology together to develop a winning trading strategy? Let's take an IDDA approach to find out.

 

P.S.  Join me on my LIVE and FREE webinar on Thursday at 5 PM GMT to discuss Canadian Dollar.

 

NZDJPY confirms above Ichimoku cloud - Kiana Danial with Orbex NZDJPY confirms above Ichimoku cloud - Kiana Danial with Orbex

 

Technical Analysis - NZDJPY Confirms Above Ichimoku

Medium Time Frame

The NZD/JPY pair broke above the Ichimoku cloud and above a triangle chart pattern on the daily chart on Wednesday. This could signal further bullish moves towards medium-term target of 75.75; the 50% Fibonacci retracement level and an important resistance. 

The pivots remain on the Ichimoku cloud and 73.45 and 72.50 as we have discussed in our Facebook group.

NZDJPY Confirms Above Ichimoku Cloud and Triangle Chart Pattern NZDJPY Confirms Above Ichimoku Cloud and Triangle Chart Pattern

Long Time Frame

On the monthly chart, NZDJPY remains inside a thick, upward-moving cloud, indicating a long-term consolidation.

 

Fundamentals - NZDJPY Confirms Above Ichimoku

While we are looking at New Zealand and Japanese currencies, it is important to remember that a downward pressure on the US dollar could sometimes impact the Japanese Yen.

 

The main driver behind the NZDJPY gains was Monday's Consumer Price Index out of New Zealand which came in at 0.2%, bettern than the expected 0.1%. However it was down from previous 0.4%, This could indicate that the NZD gains may be short-lived from a fundamental point of view.

 

Japan's  All Industry Activity Index came in lower than August, yet anothre force behind short-term JPY weakness.

 

More on the Economic Calendar...

Thursday: Coming up during the London session the UK will release their Retail Sales at 8:30 AM GMT and the ECB will hold a monetary policy meeting in Frankfurt later during the session. The US will release their Initial Jobless Claims for the week of October 15 at 12:30 PM as we head into the New York session.

Don’t forget to join me for a free webinar on Thursday as I cover CAD Trading Strategies, LIVE.

Friday: During the Asian session New Zealand releases their Credit Card Spending.

During the London session the UK will release their Public Sector Net Borrowing (Pounds) (SEP) at 8:30 AM GMT. Canadian dollar is bound to volatility during the New York session as Canada releases their  Consumer Price Index at 12:30 PM GMT

Market Sentiment - NZDJPY Confirms Above Ichimoku

The majority of the New Zealand Dollar traders (almost 39%) currently are shorting it. As a contrarian trader, you may consider this as a short-term bullishg signal.

Trading Strategy - NZDJPY Confirms Above Ichimoku

Considering all points of the IDDA, we can conclude on a short-term strategy as opposed to a long or medium-term strategy.

Depending on your  risk tolerance, you could consider a short-term bullish position on the NZD/JPY.

Bullish Scenario

Aggressive to moderately aggressive traders can enter a position now, targeting 75.75

Stop-loss can be set at 73.45.

Bearish Scenario

 

A break back below the Ichimoku cloud on the daily chart would change our outlook back to bearish, with 73.45 as first alternative target

Here are Invest Diva's calculations for important NZD/JPY approximate levels to keep an eye on:

Support Levels Turning Point Resistance Levels
69.50 72.50 75.75
71.50 73.45 80

 

 xoxo

Kiana 喜愛成
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Article is commentary only. Trade at your own risk and analysis. Please read full disclaimer at https://investdiva.com/terms-of-use

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