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Like the EURJPY that we discussed the other day, the NZDJPY has some well defined horizontal levels. One of those is 80.15, which broke down during Wednesday’s session.
You can see from the chart below how the level served as resistance between December 27 and January 2. It then began to attract bids following the January 5 rally.
With the NZDJPY back below 80.15 on a daily closing basis (5 pm EST), the area should start to attract selling pressure once more.
That’s what occurred during Thursday’s session. Despite an intraday move to 80.59, sellers regained control to force a sub 80.15 close. As long as that continues to happen, I favor selling the NZDJPY.
Key support from here comes in at 79.20 followed by 78.35. Alternatively, a daily close at 5 pm EST back above 80.15 would negate the idea of a move lower and re-expose 81.25.
Note that BOJ Governor Kuroda speaks on Friday, January 26 at 9 am EST. However, I don’t anticipate much of a market response if any.
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