I am always focusing on forex these days to gain more knowledge on cross rates rather than simply the rates to USD. It is really challenging for me as I do not have much time to keep track of the changes of the rates, and I have to use much of my spare time to do so. However, I am still a newbie in this aspect and I believe I am improving.
Today after reading news from Bloomberg about Japanese Yen, I did an technical analysis on JPY/NZD. On Bloomberg, a bond and currency dealer in Japan said due to the faster economy recovery in Asia-Pacific region than in Japan, many people showed their anticipation in NZD by selling JPY/NZD. That's why JPY/NZD dropped.
We could see that the price dropped through the channel and was heading to the next fibonacci line, which is at 1.5528. We would expect a small rebound at that point, but given the slow recovery in Japan, the line is probably having a very small supporting effect, and the price would go further downwards.
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