NZDJPY has been stuck in a range between 80.44 and 83.26 since it halted its April-July downtrend. The outlook remains bearish but there are some indications of extending its range-bound trading into the medium term.
Prices are below the moving averages and the Ichimoku cloud, suggesting ongoing bearish momentum. But the Tenkan-sen and Kijun-sen lines have begun moving sideways along the center of the recent range. The Ichimoku cloud is also starting to shift towards a sideways pattern, signalling a possible reversal of trend to a more neutral outlook. RSI is also looking neutral fluctuating close to 50.
The pair is likely to remain within a range if it does not stray too far from its current midpoint of around 81.80. A break above the top band at the July 29 high of 83.26 would take the pair above the 50-day moving average and into the cloud to neutral territory. If prices dropped below the July 16 support at 80.44, this would strengthen the downside bias, putting NZDJPY back onto a downtrend.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.