On 1st Oct when the market was trading at 77.062 - slightly above 38.2% fibo retracement level, we published our analysis containing strong hawkish sentiments on New Zealand Dollar versus Japanese Yen that would manage to break above major resistance zones. Support to the pair was provided by 61.8% fibo level on the weekly highs and lows price actions at 75.90 that provided a reason to the bulls for continuation of bullish trend after taking an exit from upper trend line on 31st Aug. 61.8% and 50% fibo retracement levels on the daily chart have been broken with an impulsive hawkish rally, turning 77.34 and 78.0 into support zones. The relative strength index on the interday charts have entered into the overbought conditions and will take temporary bearish reversal to adjust its RSI before providing any higher highs in the daily time frame. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The Japanese Yen has been seen taken badly out by the cross currency pairs against it after King Dollar gained some strong grounds on maintaining bullish momentum and driving rest of the high along with it - dragging the Japanese Yen against most of the currencies.

The pair has adapted to hawkish psychological sentiments in the weekly time frame after breaking above the exponential moving averages 50 and 200 in the daily and interday timeframes, indicating the creation of a double top structure that might lead the pair towards 80.0 price action. The oversold conditions might restrict the pair from providing a new high in the daily time frame and will drag the pair towards 61.8% and 50% fibo retracement levels before rallying higher. 

NZDJPY

Oct 13 2021