NZDJPY Nearing Previous Highs - Consolidation or Breakout?
Been watching $NZDJPY again. It’s been a bit of a grind back up, but we're now flirting with the 95.00 handle, not far from the recent peak around 95.021 that held a few sessions back. On the daily, the momentum still looks reasonably firm, but it's not exactly rocketing.
My take is we’re at a pretty critical juncture. A clean break and hold above 95.021, especially on a close, could open up some room towards the mid-95s. However, the previous rejection there wasn’t exactly weak. If we see another failure to hold above 95.021, perhaps a quick pop and then a retreat back below, then I'd be looking for a potential retest of the 94.60-94.70 area, which has offered some support lately. The risk, for me, if one were looking at further upside, would be a clear daily close below 94.60. That would invalidate the recent upward bias and suggest a deeper correction is on the cards. Just my two cents.
Ah, the age-old question: will it soar or simply catch its breath? I've seen more consolidation at critical junctures than at a taxidermist's convention. It'll be interesting to see if this one actually goes for the breakout, or just decides it's tired.