The New Zealand Dollar has continued to decline in a descending channel pattern against the Japanese Yen since the beginning of March. The currency pair declined by 633 pips or 9.58% in value during last week’s trading sessions.
The exchange rate is currently trading near a resistance cluster formed by the weekly R1 and the monthly S1 at the 66.06 area.
If the NZD/JPY pair breaks the resistance cluster, a surge towards the upper boundary of the descending channel pattern at 69.02 could be expected within the following trading session.
However, if the resistance cluster holds, the currency exchange rate will most likely continue to slide lower in the shorter term.