The Japanese Yen finally regained some ground against the US Dollar during this afternoon’s London session but continues to display weakness against many of its counterparts. In particular, the NZDJPY and AUDJPY crosses remain technically bullish in the short-term.
Looking at the NZDJPY daily trend, we see a validated bullish trendline that began in November last year following many months of extended consolidative activity. Another point to consider concerning the direction is the divergence between the Stochastic indicator and MACD. Notice we had a recent sell signal on the fast stochastic line, yet the MACD remains bullish. It suggests some potential buying opportunities as the market produces some corrective price action or perhaps even short-term profit-taking.
Regarding upside targets on the daily chart, the primary one is 77.88, which the NZDJPY pair last visited in December 2018. This price is based on the DiNapoli levels (68.67 / 74.03 / 72.71 ) as shown. The area of 72.71 may also become an area of support should the current trend breakdown and develop bearish tendencies.
Note: Click on charts to enlarge.
By Adam Taylor CTEe
Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg
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