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10 August

By Amir El Araby

Category: Technical Analysis

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North Korea fired a missile, Yen strengthens, NZDJPY under technical microscope

North Korea announced that, an Intercontinental Ballistic Missile (ICBM) was fired in the air for 40 minutes, ordered by Kim Jong Un.

North Korea said, the missile reached a maximum altitude of 2800 kilometers and that it could reach any place in the world.

Accordingly, we have witnessed a strong downside move on JPY pairs, as Japanese yen strengthened across the board, acting as a safe haven.

With that tin mind, we have had a look at the NZDJPY pair, which moved aggressively to the downside as well, influenced by the weakness appeared on New Zealand dollar this week against U.S. dollar as previously anticipated in addition to the sudden strength of Japanese yen.

Technically speaking, NZDJPY looks ready to offer fresh sell entries based on the bearish harmonic Bat pattern, formed over daily studies as seen on the graph below.

Moreover, RSI started to decline after recording 82.00 as the highest value since the second week of December 2016.

Bears should place their stop loss above (X) point at 83.70.

Amir El Araby

Financial advisor with 18 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts).