New Zealand dollar continues to fall against Japanese yen
The New Zealand dollar has fallen again during the trading session on Friday against the Japanese yen, as we are more than likely going to continue to reach towards the lows recently seen. The 50 day EMA offered resistance before we got the massive gap lower to kick off the week, turned around to fill that gap, and have been falling ever since.
This suggests that perhaps there are a lot of concerns about the US/China trade situation still, as New Zealand is very highly sensitive to China. The Japanese yen of course is considered to be a safety currency so this offers a lot of clues as to whether or not traders continue to be a bit nervous. At this point, the market is very likely to test those lows and possibly even break down towards the ¥65 level. Rallies at this point should continue to offer plenty of resistance above, especially near that 50 day EMA, and the gap which is basically ¥69.
Looking to shorter-term charts to fade signs of exhaustion will continue to work, as we chop our way down to lower levels. In less something changes drastically with the US/China situation, or the geopolitical situation gets better, it’s very unlikely that this market will have a longer bull run. The New Zealand dollar and its cousin the Australian dollar have been hammered over the last couple of days, and rightfully so. Both of these economies are likely to have an interest rate cuts down the road, although at this point it’s less about the interest rate differential and more about the fear that starting to overcome a lot of the world’s currency traders. This has been a nice bounce, but it has simply been a return to the 50% Fibonacci retracement level and a continuation of the downtrend.
This suggests that perhaps there are a lot of concerns about the US/China trade situation still, as New Zealand is very highly sensitive to China. The Japanese yen of course is considered to be a safety currency so this offers a lot of clues as to whether or not traders continue to be a bit nervous. At this point, the market is very likely to test those lows and possibly even break down towards the ¥65 level. Rallies at this point should continue to offer plenty of resistance above, especially near that 50 day EMA, and the gap which is basically ¥69.
Looking to shorter-term charts to fade signs of exhaustion will continue to work, as we chop our way down to lower levels. In less something changes drastically with the US/China situation, or the geopolitical situation gets better, it’s very unlikely that this market will have a longer bull run. The New Zealand dollar and its cousin the Australian dollar have been hammered over the last couple of days, and rightfully so. Both of these economies are likely to have an interest rate cuts down the road, although at this point it’s less about the interest rate differential and more about the fear that starting to overcome a lot of the world’s currency traders. This has been a nice bounce, but it has simply been a return to the 50% Fibonacci retracement level and a continuation of the downtrend.