NZD/JPY – After dropping for straight 9 sessions NZD/JPY pair looking for support.

Chart of the Week – 23^rd September 2022

Chart Analysis:

NZD/JPY chart shows that the pair has been dropping and now looking for support. The yen has been weakening lately as BOJ chooses to continue with the dovish policy. There has been continuous upside pressure on the USD/YEN pair as it climbed to 24 year high just recently, the reason being the BOJ does not want to switch to policy normalization. However, the BOJ first time intervened on Thursday first time since 1998 to push up and offer support to YEN and that showed effects across the currency pairs. This can be seen in the NZD/JPY pair too as it just dropped to touch the support level at 82.66 on the chart and after a failed recovery the drop continues. Seemingly, the investors are looking for support and it appears 82.66 can again be tested sooner than later.

Please check the Chart Trading Insights below

• Resistance Zone: 85.20 to 85.50
• Key Resistance Level: 84.33
• Major Pivot Point: 83.18
• Key Support Level: 82.66
• Support Zone: 81.80 to 81.30
• 200 Day SMA – Green Line
• 50 Day SMA – Red Line
• 20 Day SMA – Blue Line

Daily Chart Directional bias - 2 Weeks 

Trade Insights

NZD/JPY – Chart shows viable Short Positions below the Major Pivot Level at 83.18 heading towards the first target of 82.66 Key Support and then further test of Support Level at 81.80.

Possible entry of Short Trades below the Pivot Level at 83.18

Potential First take profit could be at - 82.66

Potential Second take profit could be at – 81.80

Potential Third take profit could be at 81.30

Alternatively, possible long positions if the pair manages to recover above the Pivot point at 83.18 with the first target of 8.77 and then the next test of 84.33 Key Resistance Level.

Possible Entry for Long trades above Major Pivot Point at 83.18

Potential First take profit could be at – 83.77

Potential Second take profit could be at – 84.33

Potential Third take profit could be at – 85.20