Weekly Technical Outlook: NZD/JPY; Market Forecasts for February 8th – February 12th

• Resistance level   78.890
• Pivot Level 77.925
• Support Level 76.771, 76.064, and 75.358

Technical Analysis

Daily bias in NZD/JPY remains bearish with 78.890 resistances intact. A deeper decline is expected as long as resistance is holding the area. The price action stays below resistances so far at end of the week and such a decline is viewed as a correction. Thus, we’d expect the pair to remain bearish with a break of 77.925 indicating near term bearish reversal. Turning towards the outlook, it continues with a downside bias, signaling a pin bar reversal.

Bearish movement rejection seen at resistance area, closed below the break of trend line and a stochastic oscillator is currently at 81.0 levels. The pair closed below the rejection of trend line clearly indicating s trend reversal shifting the momentum. Current developments suggest that the medium term downside is expected for a further low and the focus shall be at 76.771. A break here should make lower lows with 76.064 and later to 75.3358 levels. However, a break of resistance level at 78.890 will dampen our bearish view on the pair and looks for an upward bias. Outlook however, remains bearish for the week.

Economic

• Electronic Card Retail Sales, Business NZ PMI
• Business NZ PMI for the Kiwi’s
• Current Account n.s.a. for the Yen
• Foreign investment in Japan stocks, Foreign bond investment

Area of Interest

• Strong resistance at 78.890 area and closed below resistance levels.
• Bearish pin bar reversal strongly closing below the break of trend line.
• Price action closed below trend line and oscillator below 81.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

For more detailed analysis from the author, please visit NoaFX.