The sentiment still remains positive, and traders are buying the risk-on currencies, such as the New Zealand dollar. As a result, the NZDJPY cross pushed to levels unseen since February 2018.
The cross has finally managed to break to new highs, and as long as the price remains above 79.20, the short-term outlook seems bullish. At the same time, the medium and long-term trends seem bullish.
The ongoing formation looks like a very nice bullish triangle, with the full potential of the formation circa 350 pips. Therefore, the full target is near 82.50 from the medium-term perspective.
Alternatively, if the support of 79.20 gets broken to the downside, there is another big demand zone near 78.30, where the medium-term uptrend line is located.
Stocks are usually well correlated to the JPY crosses, and if equities continue to rise higher every week, the NZDJPY cross might reach its 82.50 target in June.
Source: https://www.axiory.com/technical-analysis/nzdjpy-at-three-year-highs
