NZD/JPY: Will Price Break Or Bounce From The Trendline?
Good day all, but unfortunately, a not so great start to the week as our prayers are with the families affected with the mass stabbing which occurred in the city of Kawasaki, near Tokyo Japan. It's been reported that there a man in his 50's wielding a knife in both hands attacked a group of school children at a bus stop. 18 individuals were attacked - 16 of which were school girls and 2 of which (an 11-year-old girl and a 39-year-old man) have died. The suspect then stabbed himself following this mass assault and died later in hospital.
Although this did not have an effect on the Yen, it is worth keeping abreast on issues and surrounding topic areas occurring socially that could potentially affect currency sentiment.
Looking at the New Zealand Dollar, we are braced for the release of the RBNZ and government budget this week. As well as this business confidence is being eyed closely. This could provide some much-needed stimuli to spice up price action in this pair as it has been ranging sideways since the middle of May.
Recently tapping lows of 71.300, we have managed to consolidate our way to tap the plotted descending trendline for the third time. Could this prove significant? One would expect a break or bounce scenario to follow suit. An upside retracement is still preferred, especially if we expect to ride price lower. However, if we hold below this dynamic resistance we could expect to experience an aggressive decline to the likes of 70.000.
Our first immediate upside target would be located around the 72.500 region.