As NZD gains ground against the Yen, we are looking forward for a weaker Yen given the fact that PM Abe ruling coalition won the majority seats in yesterday’s election and helped increase risk averseness which has been missing since the surprising Brexit vote. Amongst the first things that Abe mentioned was the increase of economic stimulus which is estimated to be above the benchmark $100B or 10 Trillion Yen. Of course any economic stimulus is expected to cause some Yen sell off and that is exactly what is hinted from our charts.
Let’s have a look at charts:
There is a strong buy signal in the Daily chart if stochastics is considered, price action is strongly swinging in from the oversold and we are looking for a situation in which any break above the resistance trend line will be a trend continuation-probably to the 82 price levels. At the moment price is at the 100 Fibonacci level and if it closes above it then we initiate our buy at any retracement today.
The bullish trend is stronger in the 4 HR chart as shown by the upper BB candlestick hugging which indicates that momentum is strong. Today we look to buy in the 15 minutes chart at the 100 Yearly Fibonacci level or at yesterday’s high as shown below:
TP-82.50-which is clear in the Daily chart.
Have a pipful day.