NZD/JPY Set Looms as Japan’s Election Could Effect Abe’s Plans
Abe’s next step of this plan involves a legislative agenda and makes the Monday elections in Japan all the more important as gaining seats in the upper chamber of parliament will be important to getting the support needed. If Abe and his LDP party can strengthen their position, this will be bullish for the Nikkei and USD/JPY.
However while I like JPY weakness, I like the breakout set up that is setting up in the NZD/JPY.
The NZD/JPY has consolidated nicely into a tight trading range making the breakout/breakdown set up more reliable on a pierce of the range. In this case the pair is setting up a potential break OUT on JPY weakness so while I do I have a FUNDAMENTAL bias for it, there is a technically supported bias for this too:
The near-term ceiling (aka “breadcrumb”) is at 79.73 but I will wait for momentum through the 79.80 minor psychological level.
Support is at 76.67 and there is another layer of support just above the 75.00 level and although I am not looking to get short this pair, I have to remember that a 76.67 breakdown with sufficient momentum to take out 76.50 could easily follow through to those lows.
The MACD Histogram is positive so this makes the BUY on a break through 79.80 “pre-confirmed” – which suits me just fine since I would rather sell JPY versus the NZD.
About Raghee Horner
Raghee Horner is the Chief Currency Analyst for IBFX. She has written three books published by John Wiley & Sons including her latest, “Forex on Five“. Raghee is a featured contributor at TradeStation, ForexFactory, BabyPips, Investing.com, and is a blogger for the StockTwits Network. Raghee runs a popular morning chat, trading commentary, and alert service at TradeForexFutures.com.
Recent posts by Raghee Horner
- Top Trade Idea for July 11, 2013 – AUD/NZD
- Trade of the Day for June 27th, 2013 – AUD/CAD
- Top Trade Idea for June 20th, 2013 – EUR/USD
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