Nzdjpy Escapes From the Triangle to the Upside

By Tomasz Wisniewski|

Published: September 06 2022, 14:39 GMT+0

Nzdjpy Escapes From the Triangle to the Upside


The instrument on the run today is definitely the Japanese yen. It’s currently the weakest currency on the market and is coming back to the sentiment which we previously saw predominantly in March and April of this year. The USDJPY is heavily overbought but there are other pairs where indicators are not so overheated, for example today’s NZDJPY.

Since the beginning of the year the pair has been creating a giant symmetric triangle pattern (black), which have narrowed its movements since June. Today is a big day for the NZDJPY as the pair, for the first time this year, is trading outside of this triangle, which of course means a breakout and trading signal. The breakout is to the upside, so the trading signal is to buy.

As it often happens with triangles, nearby you have a horizontal resistance waiting to be tested. In our case it’s the area around the 86.6 (blue). The price is very close to that so we can assume that we’ll get there really soon. The price breaking the blue would be an amazing buy signal. In case of a bounce, we would have an interesting occasion to go short. As for now, the first option seems more probable