Kiwi and Aussie are both trading broadly higher today, with help from improving market sentiment. Asian stocks are trading higher, following the strong rebound in US indexes overnight. Technically, speaking, NZD/JPY looks ready for an upside breakout, while AUD/JPY could follow soon.
NZD/JPY’s consolidation pattern from 86.80 should have completed 83.30, after struggling around 55 day EMA. Break of 86.80 resistance should send the cross through 87.33 high to resume larger up trend. Next target will be 100% projection of 79.44 to 86.80 from 83.00 at 90.36. But break of 84.85 will dampen this view and bring more corrective trading first.
AUD/JPY is lagging behind for now. But it’s also possible that corrective pattern from 96.86 is complete at 91.41. Further rise is in favor as long as 93.96 minor support holds. Break of 96.86 will confirm up trend resumption. Next target is 100% projection of 87.28 to 96.86 from 91.41 at 100.99.