After the third and last presidential debate in the US, NZDJPY confirms above Ichimoku cloud while USD/JPY heads back towards it. How can we put the politics and crowd psychology together to develop a winning trading strategy?

Technical Analysis – NZDJPY Confirms Above Ichimoku

Medium Time Frame

The NZD/JPY pair broke above the Ichimoku cloud and above a triangle chart pattern on the daily chart on Wednesday. This could signal further bullish moves towards medium-term target of 75.75; the 50% Fibonacci retracement level and an important resistance. 

The pivots remain on the Ichimoku cloud and 73.45 and 72.50 as we have discussed in our Facebook group.

NZDJPY Confirms Above Ichimoku Cloud and Triangle Chart Pattern

Long Time Frame

On the monthly chart, NZDJPY remains inside a thick, upward-moving cloud, indicating a long-term consolidation.

Fundamentals – NZD/JPY Confirms Above Ichimoku

While we are looking at New Zealand and Japanese currencies, it is important to remember that a downward pressure on the US dollar could sometimes impact the Japanese Yen.

The main driver behind the NZDJPY gains was Monday’s Consumer Price Index out of New Zealand which came in at 0.2%, bettern than the expected 0.1%. However it was down from previous 0.4%, This could indicate that the NZD gains may be short-lived from a fundamental point of view.

Japan’sAll Industry Activity Index came in lower than August, yet anothre force behind short-term JPY weakness.

Thursday: Coming up during the London session the UK will release their Retail Sales at 8:30 AM GMT and the ECB will hold a monetary policy meeting in Frankfurt later during the session. The US will release their Initial Jobless Claims for the week of October 15 at 12:30 PM as we head into the New York session.

Don’t forget to join me for a free webinar on Thursday as I cover CAD Trading Strategies, LIVE.

Print Friendly, PDF & Email

Related Posts