#NZDJPY @ 85.6190 Risk aversion weighed on risk-perceived currencies, bolstering the safe-haven Japanese Yen. (Pivot Orderbook analysis)

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• Risk aversion weighed on risk-perceived currencies, bolstering the safe-haven Japanese Yen.
• Hawkish commentary by Federal Reserve officials kept the New Zealand Dollar pressured.

The pair currently trades last at 85.6190.

The previous day high was 87.01 while the previous day low was 86.46. The daily 38.2% Fib levels comes at 86.8, expected to provide resistance. Similarly, the daily 61.8% fib level is at 86.67, expected to provide resistance.

The New Zealand Dollar (NZD) dropped on Monday, courtesy of US central bankers reassessing further rate hikes for the next year, alongside dented risk appetite by the Covid-19 crisis in China, triggering riots in the country. Therefore, the risk-perceived NZD/JPY weakened and tumbled by 1.55%. As the Asian session begins, the NZD/JPY is trading at 85.62.

The NZD/JPY daily chart dropped from around 86.70 to 85.60s, exacerbated by the formation of a “double top” chart pattern and the fall below last week’s low of around 86.01. Oscillators led by the Relative Strength Index (RSI) turned bearish, which would open the door for the NZD/JPY to test the 100-day Exponential Moving Average (EMA) at 84.86, followed by the 50-day EMA at 84.52. If the NZD/JPY extends its losses, it will probe the confluence of the November 11 swing low and the 200-day EMA around 83.84/84.00. A breach of the latter would confirm the “double top” and will target a fall.

The NZD/JPY first ceiling level would be the 86.00 mark as an alternate scenario. A breach of the latter will expose the 87.00 mark, followed by the two-month high at 87.45. Once cleared, it will invalidate the double top and pave the way toward the YTD high at 87.86.

Technical Levels: Supports and Resistances

NZDJPY currently trading at 85.6 at the time of writing. Pair opened at 86.91 and is trading with a change of -1.51 % .

The pair is trading below its 20 Daily moving average @ 86.25, above its 50 Daily moving average @ 84.55 , above its 100 Daily moving average @ 84.88 and above its 200 Daily moving average @ 84.07

The previous day high was 87.01 while the previous day low was 86.46. The daily 38.2% Fib levels comes at 86.8, expected to provide resistance. Similarly, the daily 61.8% fib level is at 86.67, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 86.57, 86.23, 86.01
• Pivot resistance is noted at 87.13, 87.35, 87.69

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