#NZDJPY @ 86.0070 Despite a risk-off mood, the New Zealand Dollar recovered some ground vs. the Japanese Yen. (Pivot Orderbook analysis)

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• Despite a risk-off mood, the New Zealand Dollar recovered some ground vs. the Japanese Yen.
• The double-top formation in the NZD/JPY daily chart remains in play.
• Short term, the NZD/JPY is headed downwards, eyeing the 85.00 psychological figure.

The pair currently trades last at 86.0070.

The previous day high was 87.05 while the previous day low was 85.5. The daily 38.2% Fib levels comes at 86.09, expected to provide resistance. Similarly, the daily 61.8% fib level is at 86.46, expected to provide resistance.

The New Zealand Dollar (NZD) remains bid against the Japanese Yen (JPY) even though a risk-off impulse surrounds the financial market, except for the FX space, with risk-perceived currencies rising. That said, high beta currencies like the NZD are appreciating. Hence, the NZD/JPY is recovering, trading at 85.98, above its opening price by 0.42%.

The NZD/JPY daily chart suggests a double top formation emerged of late, sparked by Monday’s plunge of more than 130 pips, driving the exchange rate towards its weekly lows of 85.42, reached on Tuesday. However, the cross-currency pair bounced toward its daily high of 86.29, and its later retracement below 86.00 could exacerbate a fall to the 200-day Exponential Moving Average (EMA) at 84.10, ahead of the November low of 83.84.

In the near term, the NZD/JPY 4-hour chart portrays the pair tested the 100-EMA around 86.17 three times before diving to the 200-EMA at 85.68. However, the NZD/JPY bounced to the daily pivot point at 85.94, shy of the 86.00 figure, which, once broken, could open the door for a re-test of the 100-EMA. But the Relative Strength Index (RSI) is in bearish territory, and possible deterioration in market mood suggests the path of least resistance is downwards.

Therefore, the NZD/JPY first support will be the 200-EMA at 85.69, which, once cleared, will send the pair diving to the S1 daily pivot at 85.52, followed by the S2 pivot at 85.04.

Technical Levels: Supports and Resistances

NZDJPY currently trading at 86.03 at the time of writing. Pair opened at 85.58 and is trading with a change of 0.53 % .

The pair is trading below its 20 Daily moving average @ 86.21, above its 50 Daily moving average @ 84.56 , above its 100 Daily moving average @ 84.9 and above its 200 Daily moving average @ 84.11

The previous day high was 87.05 while the previous day low was 85.5. The daily 38.2% Fib levels comes at 86.09, expected to provide resistance. Similarly, the daily 61.8% fib level is at 86.46, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 85.04, 84.5, 83.49
• Pivot resistance is noted at 86.58, 87.58, 88.12

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