NZD/JPY seems to be exhausted from its climb and looks ready to make its descent soon.
Or will this neckline support keep holding?
Better keep close tabs on these inflection points on the 4-hour time frame.
NZD/JPY 4-hour Forex Chart Faster With TradingView
Middle East tensions and fears of a global recession are keeping risk rallies in check these days, limiting the upside for higher-yielding currencies like the Kiwi.
On the flip side, the safe-haven Japanese yen could be poised to take advantage of prolonged risk-off flows if the Strait of Hormuz stays closed for much longer.
Is NZD/JPY gearing up for a major downtrend?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
NZD/JPY has formed a head and shoulders pattern on its 4-hour time frame and is inching close to its neckline around the 92.00 major psychological level.
Keep your eyes peeled for long red candlesticks closing below this support region, as a breakdown could set off a drop that’s the same height as the chart formation.
On the other hand, reversal candles forming around S1 (92.38) and closing higher could suggest that Kiwi bulls are refusing to back down. A bounce could take NZD/JPY back up to the near-term bullish targets at the pivot point (93.12) then R1 (94.34) near the latest highs.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in EUR/GBP’s ascending channel support. But as any pro will tell you, even the cleanest breakout or rejection setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
