This pair was in a triangle chart pattern and recently busted through its resistance and now seems to be making a retest.
Will buyers jump back in soon?
Before moving on, ICYMI, today’s Asia-London session watchlist looked at AUD/JPY’s uptrend ahead of the RBA decision. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
RBA kept interest rates on hold at 0.10% as expected, drops yield target
RBA head Lowe: Markets may have overreacted to inflation data
BOJ minutes: Supply chain shortages weighing on global trade and output
Asian shares looking mixed ahead of this week’s policy decisions
China pledges policy support for consumer services sector
Crude oil prices advance on lack of OPEC production boost
Swiss CPI up from 0.0% to 0.3% vs. 0.2% forecast
Swiss retail sales rose 2.5% y/y vs. 1.4% forecast, 0.8% previous
Spanish manufacturing PMI fell from 58.1 to 57.4 vs. 58.2 consensus
Upcoming Potential Catalysts on the Forex Economic Calendar:
New Zealand GDT dairy auction coming up
RBNZ financial stability report at 8:00 pm GMT
New Zealand quarterly employment change at 9:45 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: NZD/JPY
In the absence of top-tier catalysts from Uncle Sam in the upcoming New York session, I’m lookin’ at the next major event on deck!
New Zealand has its quarterly employment report due, and a slower pace of hiring at 0.4% is eyed. Still, this should be enough to bring the jobless rate down from 4.0% to 3.9% in Q3.An upside surprise might continue to fuel RBNZ rate hike hopes, which might encourage Kiwi bulls to charge at current levels.
After all, this lines up with the broken triangle resistance and 50% Fibonacci retracement level on the upside breakout. To top it off, it coincides with the dynamic support at the moving averages, too!
Stochastic is inching lower but already dipping into the oversold region to reflect exhaustion among sellers. Turning higher would confirm that buyers could take NZD/JPY back up to the swing high around 82.20 or higher.
