The NZDJPY cross rose sharply on Monday and was 0.65 percent higher during the London session, trading slightly above the 77.00 mark.
The price surged from the first major support at 76.30, which marks the lows of the current consolidation formation. This formation could be either the bearish rounding top pattern, or the bullish flag wave pattern. As mentioned, the support is at 76.30 and if the price breaks below this level, the rounding top pattern could be confirmed, targeting the 200-day moving average near 75.70.
On the upside, if the price breaches the 77.30 resistance, the flag formation pattern could be confirmed and current cycle highs near 77.75 could be targeted.
The RSI indicator is holding the bullish trend line, which is bullish, and therefore the short-term outlook seems positive. Sentiment is also bullish today - Monday - suggesting the cross may break to the upside from the current consolidation formation.
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