The JPY crosses are nervous – will the NZD/JPY follow the AUD/JPY tripping through the next layers of support? The near term momentum suggests risks of further downside momentum.
The NZD/JPY is observing that 55-day moving average again. It has held it so well for months now (the red line in the rather busy chart below). Now we are challenging one of the key Ichimoku levels – the upper cloud boundary. The green Chikou line also seems to plunge through the price bars if we continue lower. A lower close could setup a move to the 100-day moving average converging on 80, or even a blowout to the 200-day moving average much lower if things really go haywire with upcoming global risk appetite and possibly 100.00 in the USD/JPY. Stay tuned and careful in respect of the potential volatility in the wily JPY crosses.
NZD/JPY" title="NZD/JPY" width="455" height="311">