NZD/JPY Forecast 31/08: Kiwi Stalls At 95 Yen (Chart)

(MENAFN- Daily Forex) The New Zealand dollar tried to break out again during the trading session on Friday against the Japanese yen, but we continue to see a bit of a ceiling at the 95 yen level.

NZD/JPY

The New Zealand dollar tried to break out again during the trading session on Friday against the Japanese yen, but we continue to see a bit of a ceiling at the 95 yen level. The 95 yen level is a major ceiling as we have seen multiple times now. And when you look at the Stochastic Oscillator, we are overbought, and we have seen moving averages cross, kicking off a potential selling signal for a lot of traders.

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The market continues to see a lot of volatility, and of course, the carry trade is still very much alive. That being said, you will continue to see the US dollar be the favorite route to go. If we were to break out here above the 95.50 yen level, then the market continues to go much higher, and the measured move from a technical analysis standpoint suggests that the Kiwi dollar could go looking to the 99 yen level Analysis

Being overbought is not a huge surprise, and I do think that a pullback makes a bit of sense, but that pullback doesn't necessarily have to be something major. It could be just an opportunity for value hunters to get involved in a market that is fairly bullish, although this year has been more sideways.

EURUSD Chart by TradingView

The Japanese yen itself is one of the bigger reasons to trade this pair right now. I'm short against Japanese yen multiple pairs. I do not like owning the yen, so even if this pair falls, I'm not going to sell the New Zealand dollar. I'll be a buyer eventually. I'd like to see a breakout, but if we don't get that, I'll be looking for an opportunity lower.

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