NZD/JPY Rising Channel (December 13, 2013)
NZD/JPY has been on a steady uptrend on its 1-hour time frame and might be ready to push higher, given the RBNZ’s hawkish rhetoric in their latest interest rate decision. Although the central bank kept interest rates unchanged, they did hint that they could hike if inflationary pressures remain strong.
Right now, the pair is hovering at the middle of the rising channel in a consolidation pattern. Stochastic is still pointing up and moving towards the overbought zone, which means that there’s enough upward momentum left. A rally could take the pair from its current levels to the top of the channel while a selloff could still find support at the bottom of the channel.
An aggressive long entry could be set at market and aiming for the top of the channel while a more conservative entry could be set at the bottom of the channel and targeting the top of the channel.
By Kate Curtis from Trader's Way