USD/JPY and NZD/USD Forecast - 23 March 2016

USD/JPY

The USD/JPY pair initially fell during the day on Tuesday, but turned right back around to form a strong candle. The 111 level offered enough support in order to turn the market back around, and I now feel that we will continue to grind away in the previous consolidation area. That means that we should then reach towards the 114.50 level. Given enough time, the market should then reach that area, but it is going to be very choppy between here and there. I think that the market does not have the momentum to break out to the upside, I believe it’s only a matter of time before we get an exhaustive candle, probably close to the top of the range as I mentioned previously. Keep in mind that this pair does tend to follow stock markets in general, so that of course will have an influence on where this market goes.

USDJPY

NZD/USD

The NZD/USD pair fell during the day on Tuesday, but found enough support near the 0.67 level to turn things back around to form a hammer. The hammer of course is a bullish sign, so if we can break above the top of that the market should then reach towards the 0.69 level, as it is a market that has found quite a bit of resistance in that area. Keep in mind that the Federal Reserve has step away from at least a couple of interest-rate hikes, and that of course is good for commodities in general. Going forward, you have to keep in mind also that the New Zealand dollar is highly influenced by commodity markets as well, so having said that I do believe that we will continue to see bullish pressure.

Pullbacks at this point in time should see plenty of support below, especially considering that we have not only formed the hammer, but we also have an extremely bullish move from last week. With the impulsive move, it looks like we are going to continue to try to break out above.

NZDUSD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.