NZD/JPY: Rebounds cannot be ruled out - Natixis

In view of the analysts at Natixis, given that the daily stochastic is in oversold territory, rebounds cannot be ruled out for NZD/JPY, but it will take a recovery back above the resistance at 79.60 (daily Bollinger moving average) to invalidate the descending channel in evidence in the daily chart, opening the way for a sharp rebound towards the resistance at 81.40 (upper band of daily Bollinger).

Key Quotes

“That is not our baseline scenario, however. Keep an eye rather on the support at 77.60 (monthly Bollinger moving average), as a break below this level would instil new downward momentum towards the support at 76.30 (50% Fibonacci retracement of the wave from June 2016 to January 2017/ 69.04-83.80) before the ones around 75.30-75.50 (Fibonacci projection) and around 73.90-74.10 (half-yearly Bollinger moving average).”

“Take advantage of any rebounds towards 79.60 to sell the NZD/JPY (setting the stop loss above 80.50).”