Chris takes a look at the upcoming June 1 trading session in the NZD/JPY pair. With this, it looks as if we are trying to make a significant move higher, but at this point in time we did failed during the Tuesday session. Nonetheless, piercing the top of the resistance barrier is a strong sign, and probably shows that it is only a matter of time before we do go higher.
Chris not only takes a look at the resistance been broken, but the potential ascending triangle and the potential target from there. It’s a very logical step in the way this chart lays out, and as a result we are very interested in this particular market.
Keep in mind that this is a highly sensitive market when it comes to risk appetite and of course commodities. So we need good news in the stock markets and of course the commodities markets in order to feel good about going long. Pullbacks at this point time should more than likely be an attempt to try to build up enough momentum to go higher over the longer term. It should be noted that the Japanese yen is a little bit soft at the moment against most other currency, so this is yet another reason to think that the New Zealand dollar could gather steam from here. Against the US dollar, it has shown a bit of strength as well, but unfortunately the NZD/USD pair has a lot of noise above that makes it a little bit difficult to trade at this time, so the NZD/JPY pair might be a nice alternative.