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The RBNZ was more upbeat than expected in their latest policy statement, creating this potential reversal pattern on NZD/JPY.

Currency Snapshot:

Major Forex Pairs Performance from MarketMilk
Major Forex Pairs Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Euro zone industrial production at 10:00 am GMT
  • Fed head Powell’s speech at 3:00 pm GMT

What to Watch: NZD/JPY

NZD/JPY 1-hour Forex Chart
NZD/JPY 1-hour Forex Chart

The Kiwi popped strongly in the earlier trading session after the RBNZ decided to keep rates unchanged and keep an upbeat outlook.

The central bank downplayed the impact of the coronavirus outbreak on the domestic economy while highlighting the improvements in employment and inflation. RBNZ head Orr also hinted that they aren’t likely to cut rates anytime this year.

NZD/JPY is forming a double bottom on its 1-hour chart and is testing the neckline around the 71.00 handle. A break above this resistance level could set off a climb that’s the same height as the chart formation, which is roughly a hundred pips.

Here’s a look at the pair’s average daily volatility to guide you in setting entries and exits:

NZD/JPY Volatility from MarketMilk
NZD/JPY Volatility from MarketMilk