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Technical Analysis – NZD/JPY mostly bullish

NZD/JPY 14/06/2018 | EconAlerts


NZD/JPY mostly bullish in the short-term; enters Ichimoku cloud.

NZD/JPY is trading around 300 pips above the one-and-a-half-year low of 74.54 recorded in late May, while it is relatively close to Wednesday’s two-month high of 77.85.

The appreciation over the last couple of weeks is supportive of a bullish picture in the short-term. This is also projected by the positively-aligned Tenkan- and Kijun-sen lines, though the easing Kijun-sen is pointing to weakening positive momentum.

Immediate resistance to advances seems to be taking place around the current level of the 100-day moving average at 77.41. The area around this also includes the Ichimoku cloud top at 77.55, while the region around yesterday’s two-month high of 77.85 might constitute an additional barrier in case of stronger bullish movement; the 78 round figure is also part of the area around the aforementioned peak.

On the downside, support for declines could be met around the 50-day MA at 77.00. Notice that the Tenkan-sen roughly coincides with this level, while the Ichimoku cloud bottom is not far above at 77.18. Sharper declines would start shifting the focus to the Kijun-sen at 76.20.

In terms of the medium-term picture, the bearish cross recorded in late March remains in place, though price action from late May onwards, as well the price moving above the 50-day MA (currently, it is only marginally below the 100-day one), are setting a predominantly neutral medium-term outlook. Moreover, the trading activity taking place inside the Ichimoku cloud is also endorsing the view for a neutral medium-term picture.

Overall, the short-term bias is bullish though not strongly so at the moment, while the medium-term outlook is looking neutral for the most part.

NZD/JPY 14/06/2018 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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