NZD/JPY Signals Near-term Exhaustion Ahead of Key Resistance

Michael Boutros

Thu, Oct 20, 2016, 2:15 PM

DailyFX.com -

NZD/JPY testing upper bounds of consolidation pattern
Updatedtargets & invalidation levels
Looking for trade ideas? Check out DailyFX’s 2016 4Q Projections

NZD/JPY Daily

Chart Created Using TradingView

Broader Technical Outlook: NZD/JPY has been in consolidation since the Brexit sell-off with the pair now approaching confluence resistance at the upper bounds of the pattern. The resistance range extends into the September high-day close at 75.52 and the immediate long-bias is at risk while below this threshold.

NZD/JPY 240min

Notes: An ascending pitchfork extending off the September / October lows has continued to define price action with the 75% line further highlighting near-term Fibonacci resistance at 75.07/25. Note that the pair has been marking bearish divergence into these highs and leaves the advance vulnerable with a break below the median-line shifting the focus towards 74.27 & 73.68.

From a trading standpoint, I would be looking for an exhaustion high (fade strength) while below structural resistance. A break below the embedded pitchfork is needed to shift the broader focus back towards basic trendline support extending off the August lows currently ~73.00. A close above 75.52 would constitute a breakout with such a scenario eyeing targets at 76.06, 76.37 & the 100% extension at 76.52.

A quarter of the daily average true range (ATR) yields profit targets of 25-28 pips per scalp. The economic docket is rather quiet until next week with trade balance figures from both counterparts & Japanese CPI on tap. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.

Help fine-tune you entries, click here to learn more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Billionaire Warren Buffett Recently Cut This Stock From Berkshire Hathaway's Portfolio. It Just Dropped 53% In 1 Day. Here's What Investors Need to Know.
The insurer was accused by a short-seller of "extensive" fraud.
Motley Fool•1d ago
DJT Stock Jumps. The Truth Social Owner Is Showing Stockholders How to Block Short Sellers.
An FAQ on the Truth Social owner’s website gave stockholders multiple ways to avoid their shares being lent to short sellers.
Barrons.com•3h ago
Trump Media stock jumps for second day as company goes to battle with short sellers
Trump Media is advising investors on ways to prevent their shares from being loaned for a short interest position.
Yahoo Finance•1h ago
The Most Active Stock Trader in Congress Is Buying Shares of This Magnificent Stock-Split Stock
Wall Street's most-prominent stock-split stock of 2024 has been purchased on three separate occasions by a lawmaker who completed over 4,200 trades last year.
Motley Fool•10h ago
Google Fires 28 Workers Protesting $1.2 Billion Israeli Contract
(Bloomberg) -- Alphabet Inc.’s Google has fired 28 employees after they were involved in protests against Project Nimbus, a $1.2 billion joint contract with Amazon.com Inc. to provide the Israeli government and military with AI and cloud services.Most Read from BloombergDubai Grinds to Standstill as Flooding Hits CityElon Wants His Money BackSingapore Loses ‘World’s Best Airport’ Crown to QatarRecord Rainfall in Dubai? Blame Climate Change, Not Cloud SeedingRed Lobster Considers Bankruptcy to De
Bloomberg•5h ago
4 Members of Congress Generated Triple-Digit Returns in the Stock Market Last Year: These Are the 3 Stocks They Bought
These members of Congress delivered greater returns than Warren Buffett in 2023.
Motley Fool•8h ago
Ask an Advisor: ‘Should I Be Moving Stocks to Bonds?' I'm 65 and Have 82% of My 401(k) in Equities
In my 401(k) retirement plan, I’m 82% stocks. I’m 65 and still working. Should I be moving my stocks to bonds? -Bob While it's not a satisfying answer, the real answer is that "it depends." The decision of whether to shift your 401(k) to a more conservative asset allocation will depend primarily on your longer-term […] The post Ask an Advisor: ‘Should I Be Moving Stocks to Bonds?’ I’m 65 and Have 82% of My 401(k) in Equities appeared first on SmartReads by SmartAsset.
SmartAsset•3h ago
Lithium Americas Plunges After Shares Sold at Steep Discount
(Bloomberg) -- Lithium Americas Corp.’s stock plunged the most on record after agreeing to sell 55 million shares at a deep discount.Most Read from BloombergDubai Grinds to Standstill as Flooding Hits CityElon Wants His Money BackSingapore Loses ‘World’s Best Airport’ Crown to QatarRecord Rainfall in Dubai? Blame Climate Change, Not Cloud SeedingRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsShares of the lithium explorer fell as much as 27% to $4.82 as of 9:31 a.m. in New Y
Bloomberg•5h ago
My RMDs Start Soon So I Want to Convert $900k to a Roth, but I'm Getting Conflicting Info About Having to Wait 5 Years to Use the Money
People with Roth IRAs generally have to wait five years before withdrawing earnings from their account. But the devil is in the details, and for this particular rule, getting those details can be surprisingly difficult. For starters, the IRS has three different five-year rules that apply to Roth IRAs. One of them, the conversion rule, […] The post My RMDs Start Soon So I Want to Convert $900k to a Roth, but I'm Getting Conflicting Info About Having to Wait 5 Years to Use the Money appeared first
SmartAsset•6h ago
The Fed’s probably going to hold rates steady for longer than expected. But even when that awaited rate cut comes, it may not be all that cathartic
Federal Reserve Chair Jerome Powell earlier this week said that inflation’s proving sticky and that “recent data have clearly not given us greater confidence.”
Fortune•7h ago

News

Life

Entertainment

Finance

Sports

New on Yahoo

Yahoo Finance

NZD/JPY Signals Near-term Exhaustion Ahead of Key Resistance

Recommended Stories

Billionaire Warren Buffett Recently Cut This Stock From Berkshire Hathaway's Portfolio. It Just Dropped 53% In 1 Day. Here's What Investors Need to Know.

DJT Stock Jumps. The Truth Social Owner Is Showing Stockholders How to Block Short Sellers.

Trump Media stock jumps for second day as company goes to battle with short sellers

The Most Active Stock Trader in Congress Is Buying Shares of This Magnificent Stock-Split Stock

Google Fires 28 Workers Protesting $1.2 Billion Israeli Contract

4 Members of Congress Generated Triple-Digit Returns in the Stock Market Last Year: These Are the 3 Stocks They Bought

Ask an Advisor: ‘Should I Be Moving Stocks to Bonds?' I'm 65 and Have 82% of My 401(k) in Equities

Lithium Americas Plunges After Shares Sold at Steep Discount

My RMDs Start Soon So I Want to Convert $900k to a Roth, but I'm Getting Conflicting Info About Having to Wait 5 Years to Use the Money

The Fed’s probably going to hold rates steady for longer than expected. But even when that awaited rate cut comes, it may not be all that cathartic