Trump's withdrawal unnerved investors on both sides of the Pacific. Both Japanese Yen and New Zealand Dollar saw gains as the news came out last week. However, while NZD continued its gains the rest of the week versus major counterparts, JPY started to lose momentum. This shows that NZD could fair better on the TPP discussions.
Daily Chart: The NZD/JPY pair reached our long-term bullish target of 83.26, while remaining above the daily Ichimoku cloud. A break above this level could open doors for further gains towards 76% Fibonacci retracement at 86.47.
If the pair is not able to break above 83.26, we could see a Double Top formation, reversing the current uptrend. The Neckline is set at 50% Fibonacci at 80.50. This could be a good time to go long the pair.
Monthly Chart: The monthly chart is currently signaling more bullish indication. In January the pair formed a bullish engulfing after a Doji. NZDJPY is now testing the upper band of the monthly Ichimoku cloud. This could be the make-or-break of the new saucer bottom cycle.
Trading strategy: Read more on InvestDiva.com
Daily Chart: The NZD/JPY pair reached our long-term bullish target of 83.26, while remaining above the daily Ichimoku cloud. A break above this level could open doors for further gains towards 76% Fibonacci retracement at 86.47.
If the pair is not able to break above 83.26, we could see a Double Top formation, reversing the current uptrend. The Neckline is set at 50% Fibonacci at 80.50. This could be a good time to go long the pair.
Monthly Chart: The monthly chart is currently signaling more bullish indication. In January the pair formed a bullish engulfing after a Doji. NZDJPY is now testing the upper band of the monthly Ichimoku cloud. This could be the make-or-break of the new saucer bottom cycle.
Trading strategy: Read more on InvestDiva.com