NZD and JPY

The NZD being the weakest among the major bloc, while the JPY being the strongest. So, how is the NZDJPY pair doing in that case?

The pair is currently down 1.04% on the day but more importantly it broke through the 100D MA - which it tested and failed to break below in the last three days. And the pair also broke through the 11 August low, which was held by the 61.8% retracement level of the latest swing high from May to July.

The pair is now testing support levels held by the middle-of-June lows, and a break of which will see a test of support levels closer to the 0.7800 level.

Looking at the big picture, this is a pair that has also moved in a relatively straightforward trendline over this year: Downtrend from Jan to April and uptrend from April to July.

August so far has been trending downwards. So, not the best of times to catch a falling knife. In fact, there never is a good time to ever catch a falling knife.