NZDJPY - FALSE BREAKOUT IN PLAYSymbol - NZDJPY
CMP - 87.21
NZDJPY is encountering resistance within the context of a broader downtrend. The pair appears unprepared to sustain upward momentum and is currently exhibiting signs of a potential local reversal.
Within the framework of the prevailing global downtrend, the currency pair is undergoing a corrective countertrend movement and is currently testing the resistance level at 87.40, The liquidity concentration situated above this threshold has not yet permitted a continuation of the upward move. In the absence of sufficient bullish momentum, the price has reverted back into the established range, forming a false breakout above resistance. Given that the pair remains within the range and has returned below the resistance boundary, sustained bearish pressure at the 87.40 level (the upper limit of the trading range) could initiate a renewed decline, thus resuming the overarching downtrend.
Key Resistance Level: 87.40
Key Support Levels: 86.50, 85.26
A confirmed consolidation of the price below the 87.40 resistance level would reinforce the view that bullish continuation is not imminent. Additionally, the weakening US Dollar Index is contributing to strength in the Japanese Yen, which may exert further downward pressure on the NZDJPY pair.
