Nick Nasad
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NZD/JPY: Testing Channel Support in Daily Uptrend

The NZD/JPY has been in a long-term daily uptrend, forming a well structured channel since late October.

In the Friday global session, the Kiwi was weak and in this pair it meant a move back down to 86.25, which tests the support of a) the upward channel, b) the 21-daily EMA and c) a horizontal pivot which comes in at the 86.00 level. This is a critical moment then. If the pair holds, then this would be a good risk-reward area for bulls to re-load on longs, however a break through support invalidates the recent trend and could mean a sharper retracement as stops that may be clustered just below 86 get triggered.