NZDJPY Teeters Between Support and Resistance: A Bullish Breakout or Deeper Pullback?

NZDJPY pared most of its gains as yen recovered after the US imposed additional tariffs on China. As long as support at 86.40 holds, the intraday trend is still bullish. Having hit an high of 88.53 previous week, it currently trades at roughly 87.22.

Following President Trump's announcement of growing tariffs on Chinese goods from 30% to 130%, the Japanese yen rose as a safe-haven currency, which caused investors to turn away from risk assets. Reflecting growing worldwide economic worries, this standard market reaction to political conflicts and trade uncertainty also reinforced other safe-haven currencies like the Swiss franc.

Oscillators and moving averages to forecast the trend of NZDJPY

CMP- 87.22

EMA (4-hour chart)

55-EMA- 87.226

200-EMA- 87.01

365-EMA- 87.05. The pair trades below the short and above long long-term moving average.

Major support- 87. Any breach below will drag the pair down to 86.70/86.40/86/85.37.

Major resistance - 87.50. Any break above 87.50 confirms minor bullishness, a jump to 88.10/88.50/89.25.

Indicator (4-hour chart)

CCI (50)- Neutral

Average directional movement Index- Neutral. All indicators confirm a mixed trend.

It is good to buy on dips around 87 with SL around 86.40 for TP of 88.50.