During the past three weeks, the New Zealand Dollar has depreciated substantially against the Japanese Yen. The NZD/JPY exchange rate is trading descending channels and has provided confirmations on both sides that the pair is likely to continue to decline further south.
The currency pair has been trading within the range of the weekly PP at 77.36 and the monthly S1 at 76.88 since April 29. A breakout could be expected through the upper boundary of a junior descending pattern today.
If the aforementioned breakout occurs, the price is likely to encounter a resistance set by the 200– hour simple moving average. Meanwhile, technical indicators flash sell signals. Therefore, a reverse from the up border of the junior pattern is a possibility within this session.
