NZDJPY - Consolidation May Be Fueling the Next Rally

May 12

NZDJPY on the daily chart still looks structurally bullish despite the recent consolidation near the highs. After the strong rally from the 85.35 low, the price pushed into the resistance area and has since been moving sideways inside a tightening structure. Instead of seeing a sharp rejection, the pair continues to hold higher lows, which usually signals that buyers are still active in the bigger trend.

The current consolidation also looks like a potential contracting pattern before continuation. Price keeps respecting the rising support trendline while sellers struggle to force a deeper breakdown. That balance between higher lows and capped resistance often builds pressure for a stronger directional move later.

At the moment, the structure remains constructive as long as the price continues holding above the rising support zone. Momentum has slowed slightly, but buyers are still defending dips instead of allowing a deeper correction.

If NZDJPY starts breaking higher from the current structure, the next upside targets come in at 94.97, 96.14, and 97.85. Until then, the pair may continue consolidating before the next expansion move begins.

We will update further information soon.
BrightRally_Research

Jun 4

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