Today’s flash crash session on the Japanese yen contributed to a significant slump on the NZD/JPY currency pair. The current session has a range of more than 500 pips, and the southward movement has led to key support.
The support mentioned above is around level 69.04. As you can see in the monthly chart below, it is a low from 2016. In the years 2009 – 2012, this level has proven itself many times as a resistance.
After switching to the weekly chart, we see that half of the losses have now been compensated, but the price is still under key support at 72.35. If sellers manage to beat it at the end of the week, the level of 69.04 will remain exposed.
Alternatively, the return of over 72.35 will keep this support in force. The nearest resistance in this scenario will be found at 75.50.