A few days ago I pointed to the potential range of ongoing increases in NZD/JPY. The daily chart in green rectangles shows that the price quite often respected such a range. Also, the current reflection from the bottom edge of the wedge formation, decelerated after reaching a similar size. Yesterday’s falls, however, ended with a longer lower shadow, and today the price increases from the early morning. The whole, therefore, looks like a short-term correction. It seems that in the face of the weakness of the Japanese currency, the pair has a chance to continue the rise with another target at the top edge of the wedge formation. In the near future it is possible to attack the high from Tuesday, and its breaking should confirm the upward trend.
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