NZD-JPY and Possible Head and Shoulders

By: Mike Kulej

So far this year, the New Zealand Dollar-Japanese Yen pair has not presented many trading opportunities. The first two weeks of January brought a slow, choppy uptrend, at least as seen on the intermediate term chart.

The situation changed to a degree last week, when the NZD-JPY sold off, falling from 64.00 to 62.59. On Monday, the price rebounded to 63.25 and in the process formed a possible Head and Shoulders reversal pattern.

NZD-JPY Possible Head and Shoulders

We can see the Left Shoulder at 63.43, followed by the Head at 64.00. The possible Right Shoulder is not formed yet. It could materialize around 63.45, in which case the H&S would be symmetrical. Of course, the pattern does not have to be like that, but the symmetry makes it easier to identify and act on.

The H&S will not be confirmed until the price moves below the Neck Line - the line connecting the two lows between shoulders. If it is broken, the NZD-JPY could move substantially lower, perhaps test the next support 61.70 or even break it. Chances are, we will not have to wait very long to find out. 

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.