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We won’t be seeing a lot of economic releases in the next few hours, which means we gotta pay more attention to risk sentiment.

Think NZD/JPY will extend its uptrend?

Before we talk setups, make sure you’ve read all about the headlines that dominated the U.S. and Asian sessions:

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

Upcoming Potential Catalysts on the Economic Calendar:

  • Germany’s wholesale prices at 7:00 am GMT
  • EU’s economic forecasts at 10:00 am GMT
  • U.S. initial jobless claims at 1:30 pm GMT

What to Watch: NZD/JPY

NZD/JPY 4-hour Forex Chart
NZD/JPY 4-hour Forex Chart

Risk-takers took a breather during the Asian session as some took profits ahead of the long holidays in China while others stayed on the sidelines while most of the Asian markets took breaks.

The lack of volatility left NZD/JPY just below the 75.50 mark, which is pretty close to a support and resistance level since the start of the year.

Will the Kiwi extend its uptrend against the yen in the next coupla hours?

I’m seeing some bullish wicks for the bulls who are also paying attention to the low key oversold Stochastic signal on the 4-hour chart.

If NZD/JPY gains upside momentum, then you can buy at market prices and then aim for February’s highs.

Meanwhile, Kiwi bears can wait until NZD/JPY makes new weekly lows and then target the 38.2% Fib retracement closer to the 100 SMA.

What do you think? Has NZD/JPY taken a long enough break from its uptrend? Or will the bears manage to drag the pair lower before the bulls take over?