NZD Buy Strategy! W-Bottom and Inverse Head & Shoulders ~NZD Buy Strategy on October 31~

◎Strategy and Outlook

NZDBuy Strategy

NewNZD/JPY Buy Positionwas taken.

Buying cues

・ Stabilized after the political change

・ Limited downside for declines

・ Rise in consumer price index

Selling cues

・ Weak Australian economy

・ Political confusion in New Zealand

New Zealand's price target is 1–3% (year over year).. In the previous quarterly CPI release, strong results were shown. However, due to last year’s political change and this year’s China risk as negative factors, the NZD had been declining.

Recently, the NZD has shown less reaction to risk factors falling. I believe there are two reasons why it has become less prone to decline.

One is,the negative factors have been priced in.

Second,positive factors have outweighed the negative ones.

From here, unless new negative factors appear,buying biasseems appropriate.

NZD/JPY Timeframe chart

NZD/JPY 4-hour chart

Looking at the hourly chart,it appears to be forming an inverse head and shoulders.

Looking at the 4-hour chart,it appears to be forming a W-bottom.

Short-term and long-term timeframes are moving in the same direction upward,forming at roughly the same timing.

NZD/JPY Daily chart

NZD/JPY Weekly chart

Looking at the daily chart,it is converging into a descending triangle.

From just the daily chart, it looks like a downside breakout is likely.

Looking at the weekly chart, the currentNZD appears to be at a fairly low level.

When comparing the daily and weekly charts, last time alsoconverged downward and then broke out upward,this time also likely to break out upward.

The timing of the timeframe and the 4-hour chart seems to align with a breakout on the daily chart.

On the daily chart,as long as it does not break downward, I maintain a bullish outlookand consider it a long-term holding position.