After reversing back to the upside on the 10th of September, NZD/JPY continues to climb higher a short-term tentative uptrend line taken from the low of the 12th of September. We could see the pair completing a bit of retracement to the downside, but from the short-term perspective, NZD/JPY looks positive, hence we will aim for slightly higher levels.
If NZD/JPY does not bounce from the 73.82 level straight away, still, not all is lost for the bulls, as they could take advantage of the lower rate near the aforementioned trendline. We will be aiming for a possible test of the 74.10 hurdle, marked near the high of the 18th of September. A break of that hurdle could open the path towards the next potential resistance near the 74.43 barrier, which held the rate from moving higher on the 30th of August. This is where the rate could stall for a bit, as it would also hit the return line of the latest short-term uptrend.
At the time of this analysis, it is difficult to solely rely on our oscillators. Even though the RSI is above the 50 line, it is now pointing to the downside. The MACD, on the other hand, is sitting above zero and its trigger line, at the same time pointing slightly to the upside.
On the downside, in order to start examining lower levels, we would need to see, not only a break of the trendline, but also a close below the 73.25 zone, marked by today’s low. This way, we could start examining the possibility for the pair to make its way down towards the 72.90 barrier, which acted as support on the 13th of September. If the bears remain in the driver’s seat, the 72.50 area, where the NZD/JPY found support on the 12th of September, could be reached after that.
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