Old highs/old lows being tested
The NZDJPY surged above the 100 day moving average in trading today (blue line in the chart below). The push higher has extended up to the next key resistance area. This area is defined by old highs and lows going back to 2014 and into January 2015. That area comes between the 89.66 and the 89.96 area (yellow area in the chart below).
Breaking above the 100 day moving average is a bullish move. Can the momentum continue with the break of the 89.96 level? Risk is defined and limited against the level. SO I would expect sellers to slow the move higher.
However, a move above should trigger more upward momentum with 90.212 the next major target (61.8% retracement of the move down from the December high to the February low). Key area. Key test.
Where should there be support on a correction?
Although the price is pushing a key resistance area, the break above the 100 day MA should not be forgotten. Looking at the 5 minute chart below, the 89.755 was a high spike from earlier in the day. Moving below that level will be eyed by the sellers. Below that is support against the 89.58 to 89.66 area. This is the 38.2% to 50% retracement of the last leg higher in trading today. I would expect that this should find buyers, especially if the 100 bar MA (blue line) rises into that area.
