The JPY crosses remain nervous – will NZDJPY follow AUDJPY in tripping through the next layers of support. The near term momentum suggests risks of further downside momentum. NZDJPY is having a look at that 55-day moving average again which has held it so well for months now (the red line in the rather busy chart below). Now we are challenging one of the key Ichimoku levels – the upper cloud boundary. As well, the green Chikou line looks to plunge through the price bars if we continue lower. A lower close today could setup a move to the 100-day moving average converging on 80 or even a blowout to the 200-day moving average much lower if things really go haywire with global risk appetite in the coming days/weeks and 100.00 in USDJPY gives way. Stay tuned and stay careful in respect of the potential volatility in the wily JPY crosses.
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