As we start a fresh new trading week, NZDJPY has made our Chart of The Day on the four-hour time frame. We’ll be examining the pair using the Ichimoku Cloud method.
Despite the bearish tones presented in the shorter-term time frames, including the drop of almost 100 pips since the beginning of September, the Kiwi Yen cross remains subtly bullish as we check out the various indicators shown above.
Firstly, note the lagging span (purple line) sits way above the cloud, and price action currently sits well above the 200 Day moving average line. Both of these highlights the overall bullish sentiment longer-term for the pair.
You can also clearly see how innately price action is respecting the cloud level of 71.11 as support. Should this move continue to appreciate these elements, we may witness a re-test of the 72.00 regions before shifting higher during the upcoming sessions.
On the other hand, if sellers regain some ground in the short-term, then the missed weekly pivot level of 70.50 may become a primary downside target. It’s also coupled with the 200-day moving average line nearby, so theoretically, it should hold as a substantial area of support for NZDJPY.
Note: Click on charts to enlarge.
By Adam Taylor CTEe
Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg
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