NZDJPY: Cross Soars, Tests Major Resistance

The New Zealand Dollar, also known as the Kiwi, found bottom in the middle of September and has been on the rise since then. The NZDJPY cross rose 0.60% on Thursday, trading at fresh three-week highs around 74.70 during the London session.

The critical resistance of the long-term bearish trend line is now being tested, which stands around 74.75. Should the price jump beyond that, the long-term bearish trend could end and the consolidation phase might begin, with a possible upward movement as well.

Another resistance is at August tops of 75.10 and, if broken, the price might advance toward the key selling zone between 75.50 and 76.00. Jumping beyond could start a bullish trend on the NZDJPY cross.

Bulls need to defend the support of 74.00. While the price remains above, the outlook seems bullish. However, if not held, bears could gain more strength and the next target would be around 73.50.

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