Since the beginning of the year, the price of the New Zealand dollar has been strengthening in relation to the yen. Since the pair has fallen below a level of 70.00 for a moment, there have been increases with only minor corrections. Since the low of 2 January the bulls have already gained more than 600 pips. On Monday the broken resistance was confirmed as a new support.
Another goal – 77.30
So far, there is nothing to stop the demand for NZDJPY. First, at the beginning of January, the resistance at 72.45 was broken, and now without any problems, the price has surpassed 75.45. This level should now support this pair. As you can see in the four-hour chart, there has already been a gentle test of this area, which turned out to be successful.
If demand maintains its strength, the target will be the area of resistance at 77.30. In this area the price reacted several times in November and December last year. If I would like to enter a long position, I would look for a place to make a profit there. If it comes down below the support, the bears may encounter the first obstacle in the region of 74,00-20, and then only at 72,45.
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