From around the end of August, we have seen NZD/JPY forming higher lows and pushing further north. Also, from November 14th, the pair is trading above a short-term upside support line drawn from the low of that day. But recently, the rate is struggling to overcome the 72.67 barrier, which is currently the highest point of December. For now we will remains cautiously-bullish and wait for a clear break above that barrier, in order to consider a further move north.
If, eventually, we do see a break above the 72.67 mark, this would increase the pair’s chances of a further move higher, as this would confirm a forthcoming higher high. More buyers could see it as a good opportunity to step in and push the rate further north, where we could target the 73.25 hurdle, a break of which may open the door to the 73.62 zone, marked near the lows of April 25th and May 3rd.
Alternatively, if the aforementioned upside line breaks and the rate slides below the 71.73 hurdle, marked by the low of December 18th, this could open the door for more bears to enter the field. This is when NZD/JPY may drift further south and aim for the 70.87 area, a break of which could send the pair to the 70.54 level, which is marked near the high of November 29th and near the low December 4th.
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