NZD is one of the most bearish currencies right now, despite the fact, that their interest rate is still high in comparison to the JPY.

nzdjpy-d

So one could consider carry trade here, but charts are telling us, that we need to be open also on 75.00 support break and further down move. I marked two possible options. To enter long we should wait for HH and then for HL and look for entry. Next resistance is seen at 80.68. Bears should wait for support 75.00 to be broken and then retested from bellow. Next support is seen at 69.24.

nzdjpy-w

So in each direction there is more than 500 pips available.

There is NZ trade balance news ahead of us and also some lower level JP news, so we could expect some volatility.

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