Check out this triangle support bounce on NZD/JPY!
Do you think the pair can test the resistance ahead of the BOJ decision?
Here are the levels I’m watching.
I’m on the lookout for big moves among the yen pairs during the BOJ statement tomorrow!
This pair just pulled up from the bottom of a newly-forming descending triangle pattern visible on its hourly time frame.
Can it test resistance soon? And will it hold?Technical indicators are suggesting so, as the 100 SMA crossed below the 200 SMA to confirm that the path of least resistance is to the downside.
At the same time, Stochastic is hovering around the overbought region to signal exhaustion among buyers. NZD/JPY could follow suit when the oscillator moves south to reflect a return in bearish pressure.
Heck, if sellers are very eager to take over, price might even hit a ceiling at the SMA’s dynamic inflection points!
Market watchers might be bracing for a more hawkish BOJ announcement than usual, as the central bank has veered off its easing stance in their December decision.
Some predict that the BOJ might even end its yield curve control policy or announce fresh measures to keep bond yields in check.
In any case, make sure you practice proper risk management and keep close tabs on the headlines if you’re trading the news!
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