Technical analysis: Early warning in NZD/JPY?
NZD/JPY is always the kiwi in the coal mine. To start the year, the pair knocked out the 2013 high but it hasn’t exactly sprinted away. At some point, the zero-jobs economy in Australia has to spill across the ditch.
This pair is often a barometer of global risk appetite as well. So far, earnings have been poor and a washout in stocks is possible (but I still don’t see it happening).
Technically, the chart this week in NZD/JPY is troubling. After touching a five-year high, the pair reversed below the 2013 high in a gravestone doji. It’s way too early to say, just yet, but don’t rule out trouble.
NZDJPY weekly chart