NZDJPY pair is falling in Tokyo trading as risk sours following FOMC minutes. Examine the 22 February NZDJPY Technical Forecast to see how the pair trades currently.
22 February, GKFX – NZD/JPY is continuing Wednesday’s slide into Tokyo trading, testing into 78.40 after failing to hold the 79.00 handle in New York. With China back online after taking the first half of the week off for Chinese New Year, risk-off is the name of the game in the antipodean markets.
NZD/JPY declines as FOMC, bond yields spook markets
Following increased growth and inflation expectations from the FOMC Minutes, The US Dollar started grinding its way up the charts as bond yields jumped and equities tumbled, and the Kiwi is currently falling against the Yen once again as a result.
The Kiwi has been rangebound against the Yen for ten days straight, and just as the pair looked set to break out of the range and claim the 79.00 handle, the FOMC statement has sent NZD/JPY tumbling once more, and further selling pressure could see the pair breaking below the recent range.
22 February NZDJPY Technical Forecast
NZD/JPY has once again turned away from the 200-day SMA as Wednesday’s rejection of the 79.00 psychological level leaves the 34 EMA intact as falling resistance within the same area. Resistance is built up from 78.94 and 79.20, while support is currently priced in at 78.32, 78.09, and the recent swing low at 77.63.
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