USD/CAD has made an immense move to the downside on Tuesday falling by about 200 pips.
NZD/JPY will soon be out of the rage
SELL 76.00; TP 75.60; SL 76.15
BUY 76.80; TP 77.30; SL 76.65
NZD/JPY has started recovering at the beginning of January. The pair consolidated in the middle of the bullish channel during the last 5 days. For now, it’s trading above the weekly pivot point at 76.06. The 50-day MA went above the 200-day MA forming a so-called “golden cross”. At the same time, if we check the monthly chart, we’ll see that the pair ran into the 100-month MA at 76.35, so the way up is not so easy either.
A spike in volatility may be expected this week on Thursday when New Zealand releases GDP figures. The forecasts are not that good. The decline below 76.00 will move NZD/JPY down to 75.60 (100-day MA, channel support). Buyers may reappear in this zone. At the same time, a break of the upper border of the consolidation range around 76.75 will open the way up to 77.30 (100-week MA).
Last week NZD/USD once again met resistance in the 0.6155 area. As you can see from the chart, this area stopped the pair twice before within the recent month.
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
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