NZD/JPY bulls push pair to new 2020 highs above 73.40
- NZD/JPY bulls pushed the pair to fresh year-to-date highs above 73.40 on Monday.
- Though the move was brief, and the pair quickly dropped back to the 73.10s, a technical bullish bias remains intact.
NZD/JPY managed to eke out fresh year-to-date highs above the 73.35 high set back in January, with the pair even managing to briefly make it above 73.40, although not quite advancing as far as the late December 2019 high just above 73.50.
The pair retraced the move quite sharply, however, dropping back to current trading levels in the 73.10s by the start of Tuesday Asia trade. Despite the retracement, the pair’s near-term technical bias does remain to the upside.
NZD/JPY has been trading within a bullish trend channel for pretty much a whole week now; to the downside, the uptrend support links the 25, 27 and 30 November lows, while to the upside, the uptrend resistance links the 24, 25 and 30 November highs.
A downside break of this bullish trend channel would open the door for a move lower back towards a key area of support around 72.80 that coincides with the early November high. Should the pair instead opt to take the path of least resistance and continue to grind higher, fresh annual highs are likely to be printed above 73.40 and perhaps even a test of the 73.50 level and December 2019 highs at 73.54.
NZD/USD four hour chart
Other key NZD/JPY levels
Author
Joel Frank
Independent Analyst
Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset
