The New Zealand Dollar has surged by 179 pips or 2.60% against the Japanese Yen since the beginning of July. The currency pair tested the weekly resistance level at 70.71 during this week’s trading sessions.
Currently, the exchange rate is trading near the bottom border of an ascending channel pattern at 70.19.
If the ascending channel pattern holds, a surge towards the weekly R2 at 71.36 could be expected during next week’s trading sessions.
However, if the currency exchange rate breaks the channel pattern, bearish traders could target the weekly pivot point at 69.62 in the nearest future.