NZD/JPY rebounding from key daily support!
NZD/JPY currency pair is providing a very well structured bullish setup on a daily basis. We can clearly see the price rebounding for a third time from the major support and if quotes start trading above 88.20 this would be a second confirmation for an upcoming rally. Technically we expect a move towards the resistance of 89.66 and most likely we would see it broken. The level has been tested twice before and it sustained the push but the trend continues to make higher lows and on the nest push we expect a break out to happen.
Fundamentally it is one sided situation with NZD having the highest return rate on the currencie markets and being strongly preferred by long term Asian Investors compared to ultra-low rate for the Yen and BOJ excessive monetary easing because of 2% inflation target.
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On the other hand if we see the quotes breaking below the major diagonal support of the daily trend a short – to mid-term correction might be on the way leading towards 85.00. Even if we see a break out, we expect short lived bearish movement.
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