The euro, and the Japanese yen both suffered losses against G8 currencies

NZD/JPY Forecast: Although the bias is up, the steepness of this rally may prompt a correction.

The NZD/JPY continues its gains during the week. It has risen in tandem with global equity courtesy of a positive mood in the market despite ongoing fighting between Russia and Ukraine. The NZD/JPY trades at 82.25 as of the writing.

Wall Street ended the trading session in a positive mood. The FX space saw safe-haven currencies drop, while risk-sensitive currencies rose.

Overnight, the NZD/JPY was in a subdued area around 81.64, but it soared once European traders reached their desks. It reached 82.10, which was a daily high. The market mood picked up late in the day, lifting the NZD/JPY to new YTD highs of 82.36.

NZD/JPY price forecast: Technical outlook

The NZD/JPY trend remains intact, even though the 200-day moving mean (DMA), is stuck between the 100- and 50-DMAs. The steepness of this move might make it difficult for the cross-currency to seek a correction before moving upwards.

The NZD/JPY’s first demand area would be at 82.00 if the scenario is true. The 81.00 support level would then be cleared. This would be followed by the March 14 high of 80.26. The NZD/JPY would face its first resistance on the north side with September 2017 highs at 82.75. This was followed by the 83.00 mark and the July 2017 high of 83.91.