24 Oct 2013
NZD/JPY retracing some of Wednesday’s losses; resistance 82.34
FXstreet.com (Barcelona) - The NZD/JPY has bounced Thursday on better-than-expected Chinese PMI data. But the gains are a pittance compared to the sharp declines from Wednesday.
NZD/JPY traders have little to go off of besides sentiment around Chinese debt risks
The news out of China regarding the largest banks having to write-off three times the amount of bad debt than a year earlier was truly unsettling for market participants on Thursday. It caused everyone to take stock of the rationale behind all of the positions on the books. It seemed in retrospect to be a massive move to reduce some of the bullish exposure which has been building in portfolios over the recent days and weeks. All of this self-analysis helped cause the NZD/JPY to move from 83.97 down to 81.34 in two sessions.
Technical outlook for NZD/JPY
Technicians say support for NZD/JPY comes in at Thursday’s low at 81.34 – which is followed by the 10/8 low at 80.02. Resistance for NZD/JPY comes in at Fibonacci resistance of 82.34 and is followed by 82.65 – also Fibonacci resistance.
NZD/JPY traders have little to go off of besides sentiment around Chinese debt risks
The news out of China regarding the largest banks having to write-off three times the amount of bad debt than a year earlier was truly unsettling for market participants on Thursday. It caused everyone to take stock of the rationale behind all of the positions on the books. It seemed in retrospect to be a massive move to reduce some of the bullish exposure which has been building in portfolios over the recent days and weeks. All of this self-analysis helped cause the NZD/JPY to move from 83.97 down to 81.34 in two sessions.
Technical outlook for NZD/JPY
Technicians say support for NZD/JPY comes in at Thursday’s low at 81.34 – which is followed by the 10/8 low at 80.02. Resistance for NZD/JPY comes in at Fibonacci resistance of 82.34 and is followed by 82.65 – also Fibonacci resistance.