NZDJPY Breakout Complete with Overhead Targets in Sight

Published by

Written By: Kevin George

Nov 25, 2020, 12:59 GMT 12:59

NZDUSD

Summary:

NZDJPY has rallied to 72.90 on the day and the 73.00 resistance level is the next obstacle on the path forward for the Kiwi dollar.

NZDJPY has rallied to 72.90 on the day and the 73.00 resistance level is the next obstacle on the path forward.

The Kiwi dollar got a boost on Monday from higher retail sales. The New Zealand statistics bureau reported a sharp gain of 28% for the most recent quarter, following the Q2 decline of 14.6%. The release was another highlight in New Zealand’s emergence from the country’s coronavirus woes.

The Yen has been under pressure across the board as risk assets see less demand in light of the vaccine emergence, while oil’s rally has also been negative to the Japanese currency. A continuation of these trends would see the NZDJPY supported.

NZDJPY Technical Outlook

The NZDJPY pair has pushed through the 71.70 resistance and the 73.50 level is the next obstacle with 76.00 being a bigger target. This would be negated on a bearish close but the path is higher for now. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.

NZDJPY Weekly Chart

Written By: Kevin George

Kevin George has over twelve years' experience in financial markets trading, which included stints in London and New York, trading equities and currencies. He has also traded in commodities, equities, futures and options. He has extensive technical-experience and combines this with a fundamental overview. He has published for SeekingAlpha, where he runs his own subscriber newsletter and graduated with an MSc in finance in 2017.