The NZD/JPY saw a recovery on Tuesday after falling to a seven-month low of 83.15. The pair ended the session near 84.90, marking a gain of over 1%. As the Wednesday Asian session begins, the pair is trading near 85.00, showing little change.
Technical Analysis and Key Levels
Despite the recent bounce, the overall trend for NZD/JPY remains downward. The pair is hovering close to the Tenkan-Sen at 85.03, which serves as an immediate resistance. A break above this level could expose the Senkou Span A at 85.4, followed by the Kijun-Sen at 85.66. Further strength could push the pair to the next resistance at Senkou Span B around 86.43.
On the downside, if NZD/JPY fails to maintain upward momentum and falls below 84.00, the next support will be the YTD low of 83.15. Should the pair breach this level, the August 5 low of 83.05 would come into focus, followed by the psychological 83.00 mark. A further breakdown could lead to a slide toward a two-year low near 81.63, set on April 27, 2023.
Conclusion
While NZD/JPY has bounced from its seven-month low, the overall bearish trend is still intact. The key resistance at the Tenkan-Sen and subsequent levels will be crucial in determining whether the pair can extend its recovery or whether the downtrend will resume. Traders will look to 84.00 as a critical level, with further downside risks if it fails to hold.
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