10/15/2021
NZDJPY skyrockets this morning 1.16% on the trading day moving more in a week than it has in several months. This recent jump in buying came from the Reserve Bank of New Zealand announced that they will raise rates four times in 2022 while Japan has yet to declare an interest hike.
Our outlook
Although price has jumped over 4% in the past week, there is still potential for the pair to continue making gains. We have been expecting an announcement like this since the summer time when the RBNZ was talking about sooner-than-expected hikes more so than most countries' national banks. The problem now is to watch out for FOMO buying here since price has risen at a much higher rate than expected. I definitely think price can continue to run, but I think we have to start expecting a retrace here soon.
Trade Setups
NZDJPY
NJ tears above all resistance and hits a high for the year of this strong fundamental news. Price broke resistance at 80.193, and a close above this level will be promising that for the bullish investors. A close above this level will likely mean more stability up at this price as breaking a yearly high could serve as very clean support.
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