The New Zealand Dollar has been depreciating against the Japanese Yen since the end of December after the NZD/JPY exchange rate reversed from the upper boundary of an ascending channel pattern at 73.46.
Currently, the currency pair is trading near the bottom border of the channel pattern at 70.88. From a theoretical perspective, a breakout could occur within this session.
However, if the channel pattern holds, some upside potential will likely prevail in the market within next week’s trading sessions. The possible upside target will be at the 72.50 area.
