NZD/JPY – 4H Technical and Fundamental Analysis

NZD/JPY – 4H Technical and Fundamental Analysis

NZD/JPY remains supported fundamentally by a hawkish stance from the Reserve Bank of New Zealand, which recently held rates at 5.50%, emphasizing ongoing caution around inflation. This tone continues to favor NZD strength in the short to medium term.

Adding to that, seasonal trends also support bullish momentum July and August have historically been weak for the Japanese yen and relatively strong for the New Zealand dollar, aligning with the current upside bias.

On our Technical Side
NZD/JPY recently broke above a minor key resistance at 87.900, following a multi-week period of consolidation. This breakout signaled renewed buyer interest and a potential shift into a bullish continuation phase.

After the breakout, price entered a clear accumulation zone, where early buyers positioned themselves just above support. However, smart money triggered a stop-loss hunt below 87.900, targeting liquidity trapped beneath that key level.

This liquidity grab formed a Clear liquidity within the liquidity zone, creating a cleaner setup for long opportunities. Price is now heading back toward the previous resistance now flipped into a key support level.

📍 Buy Limit Setup:

Buy Limit Entry: 88.030
Stop Loss: 87.570 (below liquidity zone)
Take Profit: 89.250 (next minor resistance zone)

📌 Disclaimer:
This is not financial advice. Always wait for proper confirmation before executing trades. Manage risk wisely and trade what you see—not what you feel.