NZDJPY Nearing Previous Highs – Awaiting Confirmation or Rejection
Looking at $NZDJPY, it's had a pretty decent run today, up nearly a percent and currently sitting around 94.236. It's now bumping up against what looks like a significant resistance level from back in late May – roughly the 94.40-94.50 area. The daily high so far is 94.463, so it's already probed that level once.
My take here is it's a critical juncture. We could see a breakout above this zone, potentially opening the way to 95.00 or higher. The momentum is clearly there on the intraday chart. However, if it fails to hold above 94.40 on a sustained basis – maybe a strong close below it on the H4 or daily – then I'd be looking for a potential reversal back towards the 93.80-93.50 range. The risk, for me, on any long idea here, would be a clear break and hold below today's opening level, around 93.36. That would suggest the upward momentum is truly faltering.
Interesting analysis! I'm curious, how much weight do you typically put on previous highs when they're a few months old? Does the time difference affect their significance for you?