The NZD/JPY pair witnessed a remarkable 0.70% surge, propelled by the broad weakness of the Japanese Yen. This significant movement signals a bullish turn, especially as the pair breached the Ichimoku cloud (Kumo). As we delve into the analysis, it’s crucial to consider the upcoming resistance challenges, potential bearish scenarios, and key technical levels that traders should keep a close eye on. For tools and EAs to enhance your trading strategies, check out 4xPip and their offerings at [email protected].

Breaking the Cloud:

The NZD/JPY’s surge was fueled by a weakening Japanese Yen, establishing a bullish sentiment after breaking above the Ichimoku cloud. Currently trading at 90.14 during the Asian session, the pair showcases the dominance of bulls, though a slight dip of 0.01% is noted.

Resisting the Ascent:

The bullish trajectory faces impending resistance levels, including the cycle high at 90.43 and the psychologically significant level of 91.00. Further challenges lie in overcoming the December 27 swing high and reaching the December 1 high at 91.52. These hurdles will determine the strength of the bullish trend.

Potential Bearish Scenario:

In case sentiment shifts, bears may target supports at the top of the Kumo (89.80), the Kijun-Sen (89.61), and the Tenkan-Sen (89.53). A more significant downside challenge awaits at the bottom of the Kumo (89.15). Traders should closely monitor these levels to gauge the potential for a bearish reversal.

Key Technical Levels:

Today’s Stats: Last Price 90.12, Daily Change 0.72, Daily Change % 0.81, Daily Open 89.4

Trends: SMA20 (89.23), SMA50 (89.48), SMA100 (88.58), SMA200 (87.19)

Levels: Previous Daily High (89.6), Previous Daily Low (88.72), Previous Weekly High (90.42), Previous Weekly Low (89.04), Previous Monthly High (91.52), Previous Monthly Low (87.69)

Fibonacci Levels: Daily 38.2% (89.26), Daily 61.8% (89.05)

Pivot Points: S1 (88.87), S2 (88.35), S3 (87.99), R1 (89.76), R2 (90.12), R3 (90.65)

Summary:

The NZD/JPY’s bullish momentum, fueled by the weakened Japanese Yen, presents traders with both opportunities and challenges. Breaking above the Ichimoku cloud signals a shift in favor of bulls, but key resistance levels pose potential hurdles. Conversely, bears eye crucial support levels for a potential reversal. For effective trading tools and EAs, explore 4xPip services at [email protected].

FAQs:

What contributed to the NZD/JPY’s surge?

The surge was primarily driven by the broad weakness of the Japanese Yen, propelling the pair into a bullish turn.

What are the key resistance levels for NZD/JPY?

Key resistance levels include the cycle high at 90.43, the psychological level at 91.00, and further challenges at swing highs.

What supports should traders monitor in a bearish scenario?

Bears may target supports at the top of the Kumo (89.80), the Kijun-Sen (89.61), Tenkan-Sen (89.53), and the bottom of the Kumo (89.15).

How can traders enhance their strategies?

Explore tools and EAs offered by 4xPip for advanced trading solutions.