NZD/JPY has been consolidating inside an ascending triangle and appears ready for another test of resistance.
Will it hold or fold?
Better keep your eyes on these nearby inflection points on the 4-hour chart.
NZD/JPY: 4-hour
NZD/JPY 4-hour Forex Chart Faster with TradingView
NZD/JPY has formed higher lows and found resistance around the 94.00 major psychological level, creating an ascending triangle on its 4-hour time frame.
Price recently bounced off support and has climbed above the pivot point (93.10) as it sets its sights on R1 (93.64), then the triangle top.
Can the ceiling still keep gains in check this time?
The 100 SMA has crossed below the 200 SMA to suggest that the path of least resistance is to the downside or that resistance is more likely to hold than to break. If resistance holds, look out for a dip back to the triangle support area around the 93.00 major psychological mark.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your 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!
Lingering yen-tervention jitters could continue to keep yen losses limited, as Japanese government officials have stepped into the currency markets in order to cap declines. Meanwhile, risk appetite influenced by geopolitical headlines has been a key factor in setting the Kiwi’s direction.
Should NZD/JPY manage to bust through the triangle top, rallies could be limited to nearby resistance levels at R2 (94.58) and R3 (95.11). A return in strong selling momentum, on the other hand, could spur a breakdown and selloff to the next bearish targets at S1 (92.16) then S2 (91.62).
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.
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
NZD/JPY is testing the top of an ascending triangle, and whether that resistance holds or breaks could define the next big move. Premium members can read our lesson:
📖 The Break-and-Retest: A Higher-Probability Breakout Entry
Reading this helps you understand why most initial breakouts fail, what a valid retest looks like, and how to time entries around key resistance levels like the triangle top in this setup.
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 what the chart pattern is showing, but how to read breakout attempts and fakeouts with a structured, rules-based framework.
