NZDJPY Has Now Formed a Double Top Pattern
New Zealand has recently discovered new cases of Corona Virus, triggering the country to implement lock down measures again. The damaging effect of lock-down on the New Zealand economy may be felt on the NZD as buyers fail to continue upside on NZDJPY.
There is a strong argument for NZDJPY downside in August, including seasonality, current economic outlook and also a technical setup for bearish traders. The pair has formed a double top pattern, topping out at 71.637, and has now broken the support trend line.
The neckline on the double top pattern is at 68.156; a break of the neckline would technically signal further downside.
