NZD/JPY Bearish Opportunity – Resistance Rejection & Weak NZ Eco
🔹 Current Price: 86.46
✅ TP1: 85.84 – First Support Level
✅ TP2: 85.22 – Intermediate Support
✅ TP3: 84.12 – Major Support Zone
🔻 Stop Loss: 87.57 (Above Resistance)
🔥 Why Are We Bearish?
1️⃣ Strong Resistance Rejection & Bearish Indicators
Price is rejecting a strong resistance zone (87.00-87.57), where sellers have stepped in before.
MACD Bearish Crossover confirms downside momentum.
RSI Reversal from Overbought suggests a cooling-off period for buyers.
2️⃣ Weakening New Zealand Economy
Consumer confidence dropped to 89.2 (previously 97.5) in Q1 2025, signaling economic slowdown.
New Zealand GDP expected to contract by 0.8% in 2025, adding bearish pressure.
The RBNZ remains cautious about interest rate hikes, reducing NZD's strength.
3️⃣ Technical Setup Aligns with the Short Trade
Key Resistance Holding: 87.00-87.57 area has historically rejected price.
Bearish MACD & RSI Divergence indicate momentum is fading.
Potential Breakdown to 84.12 if support levels fail.
📌 Conclusion
NZD/JPY is rejecting a strong resistance level, with bearish technical indicators and weak fundamentals in New Zealand’s economy supporting further downside. This setup offers a high-probability short trade for both swing traders and short-term setups.
✅ TP1: 85.84 – First Support Level
✅ TP2: 85.22 – Intermediate Support
✅ TP3: 84.12 – Major Support Zone
🔻 Stop Loss: 87.57 (Above Resistance)
🔥 Why Are We Bearish?
1️⃣ Strong Resistance Rejection & Bearish Indicators
Price is rejecting a strong resistance zone (87.00-87.57), where sellers have stepped in before.
MACD Bearish Crossover confirms downside momentum.
RSI Reversal from Overbought suggests a cooling-off period for buyers.
2️⃣ Weakening New Zealand Economy
Consumer confidence dropped to 89.2 (previously 97.5) in Q1 2025, signaling economic slowdown.
New Zealand GDP expected to contract by 0.8% in 2025, adding bearish pressure.
The RBNZ remains cautious about interest rate hikes, reducing NZD's strength.
3️⃣ Technical Setup Aligns with the Short Trade
Key Resistance Holding: 87.00-87.57 area has historically rejected price.
Bearish MACD & RSI Divergence indicate momentum is fading.
Potential Breakdown to 84.12 if support levels fail.
📌 Conclusion
NZD/JPY is rejecting a strong resistance level, with bearish technical indicators and weak fundamentals in New Zealand’s economy supporting further downside. This setup offers a high-probability short trade for both swing traders and short-term setups.
Trade active
Take Profit 2 was reached! 
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Seizing Opportunities, Maximizing Returns. With 7+ years of experience, we provide accurate insights and trading signals.
💹 Free daily signals & analysis
💹 Expert strategies & updates
Join now: t.me/valchevfinance
💹 Free daily signals & analysis
💹 Expert strategies & updates
Join now: t.me/valchevfinance
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.