NZD/JPY has been rallying all month, but it could hit a solid roadblock soon.
The pair is closing in on the ceiling around the 94.00 major psychological handle.
Check out these potential inflection points in case the pair bounces or breaks higher.
NZD/JPY: 4-hour
NZD/JPY 4-hour Forex Chart Faster with TradingView
The Kiwi has been in recovery mode this May, as improvements in risk sentiment combined with bullish forces and a more hawkish outlook for the Reserve Bank of New Zealand (RBNZ).
However, Japanese officials have been working hard to limit the yen’s slide, and intervention jitters could continue to keep the NZD/JPY resistance intact.
Is the pair about to retreat again soon?
Should the pair encounter strong selling pressure around R1 (94.10), look out for a dip to nearby support levels at the pivot point (93.11), then S1 (92.48).Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the New Zealand dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Sustained bearish momentum could even drag NZD/JPY back down to the monthly lows near S2 (91.49), which is in line with a minor psychological mark or further south to April lows at S3 (90.87).
Just stay on the lookout for long green candles closing above R2 (94.73) since a break above the resistance zone could clear the way for a rally up to R3 (95.73) and beyond.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
This article touches on Japanese intervention jitters as a key force keeping NZD/JPY resistance intact, and if you’re not sure how that works, Premium members can read our lesson:
📖 Currency Intervention: When Central Banks Enter the Market
Reading this helps you understand what currency intervention actually is, how to spot it coming, and why central bank activity can override technical levels and stall a pair’s momentum.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where key levels are on a chart, but the central bank forces that can make or break them.
