Forex: NZD/JPY on the verge of an upside range?

FXstreet.com (Barcelona) - The New Zealand and the Japanese Yen are two of the ugliest currencies since the recent acceleration of the US Dollar across the board. While both currencies were hammered vs the ruling Greenback, it has left an interesting technical picture on the Kiwi vs the Yen, where a daily range has been established since April 17.

The price activity in recent weeks might be starting to provide some hints as to what force is more likely to raise victorious out of the 1-month long range. In this case, the bulls appear to have gotten the upper hand as a structure of higher highs and higher lows on the daily/H4 continues well on course to squeeze short players protecting the 85.00 round number.

Other additional technical traits suggesting that buyers may soon give a go to further upside quotes is the fact that price has built a relationship with the 20-day ema by avoiding any close below the indicator. Besides, any potential upside resolution comes within the context of a well established bullish trend, which always adds weigh to the play.

By taking a closer look at the H4 chart, one can also observe that the diagonal line drawn from each upside rejection is getting less inclined, from a 30-35º on April 25, to about 45º on May 6 to over 60º last May 10, which strengthens the notion that sellers appear to be losing ground, proven by the lack of impetuous rejections each time the level is tested.

Moreover, the consolidation has now run for 1 month, that is the longest a range has lasted in the pair if the uptrend's history serves as any indication (see length duration from March 8 to April 4?).

One of the last fortresses sellers will likely defend before greater indications of further upward moves are confirmed is the downtrend line coming from May 10, currently crossing around 84.00.