29 May 2014
NZD/JPY: Worst losing day since late Jan
FXStreet (Bali) - NZD/JPY plunged over 1 cent during Wednesday's trading, setting its lowest level since March 5th at 86.17.
The combination of broad-based Yen strength, weighed by the pressure on US bond yields, together with the break of 0.85 key technical area in NZD/USD, led to the perfect bearish storm for the NZD/JPY, recording its worst losing day since Jan 31 this year.
Technically, the daily chart indicates a bearish outlook, with lower lows and lower highs being printed. Drilling down to shorter time-frames, the pair now faces 86.20/30 (recent lows), 86.00 (round number) and 85.70 (sequence of highs from Feb), while on the upside, bull should regain 86.60/70 swing high to ease the bearish pressure.
The combination of broad-based Yen strength, weighed by the pressure on US bond yields, together with the break of 0.85 key technical area in NZD/USD, led to the perfect bearish storm for the NZD/JPY, recording its worst losing day since Jan 31 this year.
Technically, the daily chart indicates a bearish outlook, with lower lows and lower highs being printed. Drilling down to shorter time-frames, the pair now faces 86.20/30 (recent lows), 86.00 (round number) and 85.70 (sequence of highs from Feb), while on the upside, bull should regain 86.60/70 swing high to ease the bearish pressure.