With risk-off flows kicking into excessive gear at present, I’m a chance to hop on this bearish NZD/JPY development.
Will we see a pullback to the Fib ranges?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out EUR/USD’s short-term vary help bounce. You’ll want to try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Information:
Japanese family spending slumped by 2.3% vs. projected 3.2% drop
Australian NAB enterprise confidence index down from 16 to 10 in April
UAE Vitality Minister: Oil market is balanced, no want for OPEC+ to regulate
Chinese language Vice Premier reaffirmed nation’s zero-COVID coverage
China recession fears and Fed tightening hopes weigh on Asian markets
Italian industrial manufacturing stays flat vs. projected 0.1% dip
U.S. NFIB Small Enterprise Index at 10:00 am GMT
FOMC member Williams’ speech at 11:40 am GMT
FOMC member Waller’s speech at 5:00 pm GMT
FOMC member Mester’s speech at 7:00 pm GMT
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: NZD/JPY
I’m seeing a whole lot of risk-off strikes within the monetary markets at present, so I’m looking out for an opportunity to brief higher-yielding currencies.
Because it seems, fears about one other recession in China as a result of its tighter COVID-19 restrictions are sending merchants in the direction of the safe-havens.
This downtrend on NZD/JPY seems to be displaying a pullback alternative, because the 61.8% Fibonacci retracement degree traces up with a falling development line on the hourly chart.
This space of curiosity additionally occurs to coincide with the 100 SMA dynamic inflection level, which is beneath the 200 SMA to substantiate that the selloff may keep on.
A shallow pullback may even discover sufficient sellers on the 38.2% Fib to take NZD/JPY again right down to the swing low quickly!
Stochastic continues to be pulling larger, although, so there is perhaps room for an even bigger correction earlier than sellers take over.