Frank_Drago

Nzdjpy is going to drop

Short
FX:NZDJPY   New Zealand Dollar / Japanese Yen
The pair is in a descending channel in weekly timeframe , if we look at the daily chart we can see that the price has broken the 50-day moving average and has formed a double top in the last month,I think that the price could go down towards the liquidity zone around 66.2, that is the target in a 2-month view; if we analyze the pair on a shorter term view the first target (1-3 weeks) is 68.2 which is the neckline of the double top . Use a tight stop loss, for example just above the moving average.
From a fundamental point of view the RBNZ is going to cut interest rates in early 2021, there will be probably a 50 points cut (from 0.25% to -0.25%), in addition the central bank has expanded the QE to 100 billions of NZ$ and is going to expand it to 140 billions during next year.
Enjoy your trading!!
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