NZD/JPY: Expecting A Retracement Following 400 PIP Fall
Hello guys, another Monday is here, these weeks seem to be flying past!
This weekend was nothing short of interesting with an unexpected result in Australian elections causing a gap to occur across several currency pairs occurring.
Taking a look at the New Zealand Dollar Yen cross, this weeks price action has remained within the confines of last weeks price action (forming an inside bar). We are also currently displaying exhaustion depicted by a Doji candlestick. This is understandable, bearing in mind the last 5 weeks have seen a 440 PIP decline from the 76.000 region we are due a substantial recovery which we could expect to take shape in the form of consolidation or retracement. With price action currently deviating significantly from our moving averages, we will be looking for price to attract towards this dynamic resistance region.
The daily further emphasises the steep decline we've had without any real recovery. Just over a week ago we were able to break the crucial 72.500 key level and have since been able to maintain selling pressure to remain below. However, we should keep our eyes peeled for a revisit of 72.500 and 73.500 should we clear that initial resistance.
Overall, we can see that the outlook on this pair is bearish however, it is clear we are in no mans land, the best place to execute a losing trade! Remember the aim of the game is to buy low and sell high!