NZDJPY Breaks Above Ichimoku
With a massive push from the markets NZDJPY breaks above Ichimoku along with other major currency pairs early during the Sydney session Wednesday. Japan’s Industrial Production was one of the key forces behind this move. Here is more on the technicals and fundamentals for this naughty pair.
NZDJPY breaks above ichimoku – Kiana Danial Economic Report
NZDJPY Breaks Above Ichimoku | Technical Analysis
After forming and confirming a Double Bottom chart pattern on the daily time frame, NZDJPY breaks above Ichimoku cloud on Wednesday. The bullish sentiment is quite vivid, which gives us heads up about a potential pullback before the pair dances its way up to our first target at 75.50, which falls on the 38% Fibonacci retracement level. The next resistance level is set at 50% Fibo at 77.
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The significance of this break is that the pair also broke above the Double Bottom’s neckline as well as the 23% Fibo, DESTROYING every barrier to on their way to change our outlook to bullish. Our support levels are set at 72.30 and 71.25, which can also be used as stop loss levels. Get my book to learn more about technical analysis.
NZDJPY Breaks Above Ichimoku – Technical Analysis
More on Economic Calendar
Japan’s Industrial Production for July came in worse than expected at 0% MoM, which is lower than last month’s 2.3%. This attributed to Yen’s continued weakness.
Ms. Japanese yen has been the weakest currency on the forex dance floor this week as traders priced higher odds of additional BOJ easing. Needless to say, if Bank of Japan once again fails to deliver to investor’s expectations, we could see a change in this bullish sentiment… BIG time.
Asian session: Australia’s Private Sector Credit is out and Japan will release their Housing Starts figures for July
London Session: Moving forward during the London session UBS Consumption Indicator for July is scheduled at 6 AM GMT which is an index for consumer spending in Switzerland.UK’s Nationwide House Prices and German Retail Sales will also be out at the same time followed by German Unemployment Change at 7:55 AM GMT. Euro-Zone Consumer Price Index Estimate for August and Unemployment Rate for July will both be out at 9 AM GMT to create trading opportunities in the EUR crosses.
New York Session: The hottest market moving event during the New York session is Canada’s GDP released at 12:30 PM GMT. Later the US will release their Pending Home Sales at 2 PM GMT.
Next Day’s Asian session: During the next day’s Sydney session, New Zealand will release their quarterly Terms of Trade Index at 10:45 PM GMT, Australia will release the AiG Performance of Manufacturing Index at 11:30 PM and Japan will release their Capital Spending at 11:50 PM to end the trading day
Here are Invest Diva’s calculations for important NZD/JPY approximate levels to keep an eye on:
|Support Levels||Turning Point||Resistance Levels|