- NZD/JPY has shown a decisive break above major trendline resistance at 79.
- The pair has broken range trade between 100 and 200 day moving averages.
- 200-DMA at 78.33 is strong support on the downside, break below will see minor weakness.
- Trend is higher, RSI strength seen at 64 levels, but Stochs are at overbought levels so caution advised.
- We see major long-term reversal only on break below 77.56 (weekly 100-SMA).
Support levels - 79.09 (nearly converged 5 and 100-DMA), 78.75 (38.2% Fib of 83.80 to 75.62 fall), 78.33 (200-DMA), 77.55 (23.6% Fib of 83.80 to 75.62 fall)
Resistance levels - 79.71 (50% Fib), 80.60 (March 10 high), 80.68 (61.8% Fib)
Recommendation: Good to go long on dips around 79.35/40, SL: 78.90, TP: 79.70/ 80/ 80.60.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 80.8213 (Slightly Bullish), while Hourly JPY Spot Index was at -0.51803 (Neutral) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
