NZD/JPY Sitting On 200-Day EMA
Forex4you | Mar 22, 2019 01:13PM ET
The New Zealand dollar has fallen rather sharply against the Japanese yen during trading on Friday. This has been a general “risk off” day as Wall Street got hammered due to lower than anticipated US economic numbers. Beyond that, there are concerns about the German economy, and a potential slowing of global growth. As this pair is highly sensitive to risk appetite, it makes sense that we find the pair lower.
The 200-day EMA is just below, and that should offer a bit of support. We also have a little bit of an uptrend line that sits right there as well, so we could be looking at a potential bounce. However, a break down below the 200-day EMA is obviously bearish, and it kicks off a potential rising wedge pattern which of course is bearish as well. At that point, it would make a lot of sense for the ¥75 level to be tested, and then perhaps a break down below there as we would reach towards the ¥75 level based upon the wedge.
If we do get a bounce, it’s likely that the market goes looking towards the ¥76.50 level, as we continue to see a lot of concerns around the world in general. With that concern, even if we do get a bounce it is going to be more of a “climbing a wall of worry” than anything else to borrow a phrase from Wall Street. Every time this pair has fallen, it appears that buyers are willing to step back in, showing signs of resiliency. Until we get the break down, one should assume that there is still demand underneath, although clearly Friday has rattled the nerves of investors around the world. All things being equal, the 200 day EMA will probably bring in mechanical trading system’s as well.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.