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:
- Japan and China’s markets out on bank holidays
- BOE’s Bailey says U.K. won’t slash regulation after Brexit
- Bank of Canada accelerates work on digital currency amid pandemic
- U.S. oil prices log 8th session climb as domestic crude supplies drop by nearly 7 million barrels
- Fed Chair Powell says rates will stay low for a while, citing bleak jobs picture
- Fed’s Powell, invoking war effort, calls for national jobs drive
- U.S. budget deficit jumps to $163 billion in January as Washington pumps more money into the economy
- Germany extends lockdown until March but reopens schools and hairdressers
- U.K. house prices rise in January despite buyers staying away
- Biden, in call with Xi, talks of ‘unfair economic practices’
- Markets tap brakes on asset rise after getting ahead of recovery
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
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?