NZD/JPY forecast for February 25, 2021
Looking at the chart on the weekly time frame, we see that the NZD/JPY pair has just crossed the previous high from November 2018 to 78.80 and grabs towards the next previous high at 81.55 periods from January 2018. We see one big resistance zone ranging from 81.50 to 83.80, and that for bullish traders can be the target zone. Moving averages are far down the bullish side, and based on them, and there are no indications of a trend reversal. The New Zealand Reserve Bank report left its interest rate on the same previous new one who gave traders additional strength in the New Zealand dollar.
On the daily time frame, we have a strong bullish rand backed by moving averages. After a break zone of resistance at 72.00 and a retest to the same zone that then became support, the New Zealand dollar easily took the initiative and pushed the NZD/JPY pair up to the current 79.00 and could soon test the psychological level of 80.00. We can always expect a pullback, and if the NZD starts to lose strength, we look at support first at 78.00 and then at 76.00-76.50.
On the four-hour time frame, we see that the NZD is getting ready for a pullback; we need at least one more red candlestick for better confirmation, and then we look at the short-term bearish scenario. For even better confirmation, we need a break below the moving averages of MA20 and EMA20. Otherwise, we climb to the 80.00 level.
From the news for the NZD/JPY currency pair, we can single out the following news: New Zealand business sentiment weakened in February, the results of the ANZ survey showed this morning. The business confidence index fell to 7.0 in February from 9.4 in December. The result was abruptly revised to 11.8. The outlook on the company’s own activities fell to 21.3 percent from 21.7 in the previous survey. The flash result is 22.3. ANZ said most of the indicators were slightly lower than their preliminary readings, which was probably influenced by the quick lock.
Nonetheless, levels have remained firm and consistent in the view that the economy will go through a flatter period this year as the real costs of a pandemic and closed borders begin to be felt more widely. Japan’s leading index fell less than originally estimated in December, final cabinet data showed on Thursday. The leading index, which measures future economic activity, fell to 95.3 in December from 96.1 in November. In the initial assessment, the reading was 94.9.
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