The NZDJPY is forming a short trading opportunity in line with the strength meter.
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The NZDJPY price is one to watch this week as the strength meter has identified a potential short trading opportunity. The New Zealand Dollar has been weakening lately and with the RBNZ forecast to hike rates we could see this momentum continue as the hike will likely be priced in. The Japanese Yen is the weakest currency currently but the weakness could turn as stocks and bond yields begin to turn bearish.
The NZDJPY weekly chart shows the price to be losing momentum at the highs with the price closing back within the previous week’s range. If the price was to break lower we could see an impulsive move back to the previous swing highs around 82.50. If this happens we should see a 4hr downtrend develop. The current 4hr trend is starting to show signs of a reversal as the price recently has tested the double top neckline area and found resistance. If the price continues this path and forms a new low we can look for short trading ideas around the previous supply zones.
Have you seen our latest week ahead analysis video? you can see it here.
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