NZD/JPY Price Analysis: A bullish-flag pattern in the daily chart could open the door for 82.50
|- NZD/JPY begins the Asian session on the wrong foot, down 0.01%.
- Worse than expected, Japanese GDP figures, amid risk-on market mood, boosted the NZD.
- NZD/JPY: A bullish-flag chart pattern could open the door for a renewed test of the 2021 year high at 82.50.
After trading for two consecutive days in the green, the NZD/JPY begins the Asian Pacific session, on the wrong foot, down some 0.01%, trading at 80.37 at the time of writing.
On Monday, the cross-currency pair edged higher, extending the New Zealand dollar rally against the Japanese yen, which suffered on dismal than expected Japanese GDP figures. Furthermore, the risk-on mood in the financial markets dented the prospects of safe-haven assets, like the Japanese yen.
NZD/JPY Price Forecast: Technical outlook
The daily chart depicts the NZD/JPY pair is trading within a descending channel that formed a bullish flag. Further, the daily moving averages (DMA’s) remain below the spot price, adding another upward bias signal. Moreover, the Relative Strength Index (RSI) is at 51, is slightly flat, but above the 50-midline. Also, the pair is approaching the top-trendline of the bullish flag, which in case of being broken, it could open the way for further gains.
In the abovementioned outcome, the first resistance level would be the November 8 high at 81.33. A breach of the latter would expose key essential levels like the November 1 high at 82.20, followed by the year-to-date high at 82.50.
On the flip side, failure to break above the bullish flag top-trendline, the NZD/JPY pair would keep trading within the 80.00-81.00 range.
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