{"id":102958,"date":"2017-03-06T09:25:01","date_gmt":"2017-03-06T14:25:01","guid":{"rendered":"http:\/\/countingpips.com\/?p=102958"},"modified":"2017-03-06T07:13:37","modified_gmt":"2017-03-06T12:13:37","slug":"short-term-trading-idea-fx-nzdjpy-a-lowering-game-support-broken-through-at-%c2%a580-45","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/short-term-trading-idea-fx-nzdjpy-a-lowering-game-support-broken-through-at-%c2%a580-45\/","title":{"rendered":"Short-term trading idea: FX NZDJPY – a lowering game: support broken through at \u00a580.45"},"content":{"rendered":"
March 6, 2017<\/div>
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By\u00a0Gabriel Ojimadu, Alpari<\/strong><\/p>\n

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Trading opportunities on the currency pair: <\/em><\/strong>On Friday, buyers gained a foothold under the minimum 80.45 from 23\/02\/16. A double top offers a good opportunity for taking a short position. The target for this forecast is \u00a578.41 (61.8% from the range \u00a580.45 – \u00a583.81). I’m allowing for a fall in the NZD\/JPY rate to the TR trend line at \u00a578. This fall will not happen if the upper boundary of the A-A channel is broken through.<\/em><\/p>\n

Background:<\/em><\/strong><\/p>\n

The previous trading idea on this currency pair was published on the 4th<\/sup> of May 2015<\/a>. At the time of writing, the pair was trading at \u00a590.51. After the trend line was broken through on the NZD\/USD currency pair, a similar breakthrough was expected on the NZD\/JPY pair, with a target of \u00a587.27. The trend line was broken through on the 6th<\/sup> of May, and the target reached on the 11th<\/sup> of June. By the end of August, the kiwi dollar had fallen to \u00a572.42.<\/p>\n

Current situation:<\/em><\/strong><\/p>\n

As of now, a bearish signal has appeared on the daily chart; the price has broken through the \u00a580.45 level. The kiwi dollar has been in a sideways trend since the middle of December. After an unsuccessful attempt at breaking through the \u00a583.74 level on the 27th<\/sup> of January this year, bulls started closing their long positions. Finally, as the rate dropped below \u00a581.20 (first confirmation), a double top formation appeared. On Friday, sellers moved the minimum of \u00a580.45 on 23\/12\/16 to \u00a580.16.<\/p>\n

The double top provides a nice opportunity to take out some short positions. My forecasted target is \u00a578.41 (61.8% from the range \u00a580.45 – \u00a583.81). As an intermediate target, we have \u00a579.55 (27.2% from the range \u00a580.45 – \u00a583.81).<\/p>

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The Reserve Bank of New Zealand (RBNZ) took a neutral tone in their last sit-down. Their press release gave no hints about a softening of monetary policy, but neither did it say anything about tightening. The RBNZ is still concerned about a high kiwi dollar, so the central bank is unlikely to raise interest rates until the parliamentary elections to be held on the 23rd<\/sup> of September. Talks about a rate hike will only begin after this.<\/p>\n

I’m allowing for a drop in the NZD\/JPY rate to the trend line TR at \u00a578. However, this scenario will not play out if the upper boundary of the A-A channel is broken through.<\/p>\n

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Source: “<\/a>Short-term trading idea: FX NZDJPY – a lowering game: support broken through at \u00a580.45<\/a>“<\/div>\n<\/div>\n
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By\u00a0Gabriel Ojimadu, Alpari Trading opportunities on the currency pair: On Friday, buyers gained a foothold under the minimum 80.45 from 23\/02\/16. A double top offers a good opportunity for taking a short position. The target for this forecast is \u00a578.41 (61.8% from the range \u00a580.45 – \u00a583.81). I’m allowing for a fall in the NZD\/JPY […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-102958","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=102958"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102958\/revisions"}],"predecessor-version":[{"id":102959,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102958\/revisions\/102959"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=102958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=102958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=102958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}