USD/JPY tests major support levels as the Australian dollar holds an uptrend and the New Zealand dollar signals weakness following a cautious RBNZ outlook.
The pair has fallen to fresh lows and broken below the 200-day EMA, which the analyst views as a significant warning signal for the long-term trend. While the analyst has held a long position for months, they suggest the move may be finished unless a hot US CPI print forces a reversal at this critical support level.
No, the analyst views it more as a suggestion, but breaking below it serves as a warning shot for the trend.
The Kiwi is showing relative weakness following a more cautious-than-expected RBNZ meeting. The analyst is currently shorting the pair following a breakdown below 0.5860, though they acknowledge that a move above 0.5920 would shift their bias to long.
While buying AUD/NZD is a possibility, the Kiwi has shown inherent weakness, making it a viable short candidate if the US dollar strengthens.
The pair is currently in an established uptrending channel on the hourly chart, with the analyst identifying the 0.72 level as a key area for a potential pullback and bounce. Due to the US Labor Day holiday, the analyst expects low volatility in the immediate term.
The analyst suggests staying away from the trade if the price breaks below that support level.
The USD/JPY pair faces a critical juncture after slipping below its 200-day EMA, signaling a potential trend reversal. Meanwhile, the Australian dollar maintains an uptrend with a focus on the 0.72 support level, while the New Zealand dollar remains under pressure following a cautious RBNZ stance, with a breakdown below 0.5860 triggering short positions.
The pair has fallen to fresh lows and broken below the 200-day EMA, which serves as a critical technical support level that could signal a shift in the long-term trend.
The Australian dollar is currently in an uptrending channel; traders are monitoring the 0.72 level for a potential pullback and bounce opportunity.