- NZD/JPY’s 0.70% surge driven by Japanese Yen’s broad weakness, indicating a bullish turn above the Ichimoku cloud.
- Upcoming resistance challenges include cycle high at 90.43 and the key 91.00 psychological level.
- Bears could regain ground, targeting supports at Kumo’s top, the Kijun-Sen, and Kumo’s bottom.
The NZD/JPY soared sharply and posted gains of more than 0.70% on Thursday, courtesy of broad Japanese Yen (JPY) weakness across the board. In doing so, the pair shifted bullish as it broke above the Ichimoku cloud (Kumo), suggesting that bulls are in charge. As the Asian session begins, the NZD/JPY exchanges hands at 90.14, posting minuscule losses of 0.01%.
As the NZD/JPY shifted bullishly, it would face strong resistance levels on its way north, like the latest cycle high at 90.43, the December 27 swing high, followed by the psychological 91.00 figure. Once those two levels are cleared, the next stop would be the December 1 high at 91.52.
If the sentiment shifts in favor of bears and the pair begins to drop, the first support would be the top of the Kumo at 89.80. A successful break of that level would expose the Kijun-Sen at 89.61, followed by the Tenkan-Sen at 89.53, ahead of challenging the bottom of the Kumo at 89.15.
NZD/JPY Price Action – Daily Chart
