The GBPJPY surged with aggression during trading on Friday following the Bank of Japan’s unexpected move to employ negative interest rates in an attempt to stabilize its ailing economy. Prices spiked over 400 pips during this session as the Yen weakened, cutting through the daily 20 SMA and consequently turning the pair technically bullish on the daily timeframe. The next relevant level is based at 175.00 and this may act as a tough resistance or potentially a dynamic support for higher appreciations in the near term. While prices are trading above the daily 20 SMA, the MACD still trades deep into the downside and this may translate to some downwards pressures for the GBPJPY bulls. Traders may either take advantage of a breakout above 174.00 or a correction towards 172.00 for a bullish move stretching to 175.00.
The EURJPY bulls received a 250 pip welcome boost on Friday from a sharply depreciating JPY. This pair turned bullish on the daily timeframe as prices broke through both the daily 20 and 50 Simple moving averages. The candlesticks currently trade in a long term daily bearish channel but a decisive breakout and daily close above 132.50 may suggest a further appreciation towards 134.50.
This pair continues to be engaged in a tug of war as prices can be seen ranging with support at 0.7520 and resistance just above 0.7700. Prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. As long as bulls can keep above the 0.7520 support, then there may a possibility of a further incline towards 0.7760. Traders may take advantage of the breakout above 0.7660 for a bullish incline stretching towards 0.7760.
The EURNZD is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has also crossed to the upside. A breakout above 1.705 should encourage bullish investors to send prices towards 1.7350. If bears take control and send price back below 1.6500, this bullish outlook becomes invalidated.
Although the NZDCHF looks quite choppy, the noticeable level of resistance below 0.6700 should encourage bearish investors to send prices lower. A breakdown below 0.6550 should invite bears to send prices towards 0.6400.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.