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7 Jan 2014
NZD/JPY faces resistance near 86.80
FXstreet.com (Córdoba) - The NZD/JPY is falling on Tuesday on the back of a stronger US dollar and falling stocks in Asia. The pair dropped to 82.24, fresh daily low and continues to face downside pressure but is still holding above Monday's lows that lie at 86.00.
In Asia the Nikkei 225 is falling 0.40% while the Hang Seng drops 0.02%. The decline in Japanese stocks halted the USD/JPY rally, weakening even further the NZD/JPY that currently trades at 86.30, 0.14% down for the day.
NZD/JPY outlook still looking bullish
Despite the decline of Monday and another rejection from levels on top of 86.75 the short-term trend is still bullish with support coming at 85.50. A break below could trigger more corrections, toward the 84.00 support area.
To the upside, the 86.80 zone capped the upside last week and on Monday and is working as the first resistance to break in order for another upside rally. Once above the pair would be trading at the highest level since February 2008; resistance levels could be located at 87.00 (psychological level) and 87.45.
In Asia the Nikkei 225 is falling 0.40% while the Hang Seng drops 0.02%. The decline in Japanese stocks halted the USD/JPY rally, weakening even further the NZD/JPY that currently trades at 86.30, 0.14% down for the day.
NZD/JPY outlook still looking bullish
Despite the decline of Monday and another rejection from levels on top of 86.75 the short-term trend is still bullish with support coming at 85.50. A break below could trigger more corrections, toward the 84.00 support area.
To the upside, the 86.80 zone capped the upside last week and on Monday and is working as the first resistance to break in order for another upside rally. Once above the pair would be trading at the highest level since February 2008; resistance levels could be located at 87.00 (psychological level) and 87.45.