- NZD/JPY retraces brief dip below 200-DMA and is currently hovering around 78 handle.
- A rally in oil prices is underpinning the sentiment around the resource-linked kiwi.
- NZD also takes support from upbeat Chinese headline trade data, which showed widening trade surplus in both Yuan as well USD terms.
- Risk-on seen in the markets following Macron's victory in French elections weighing on JPY a further boost to the major.
- On the weekly charts, the pair has broken above 50-SMA and is attempting a break above 100-SMA at 77.78.
- Technical studies are biased higher. Weekly cloud offers strong support. Close above weekly 100-SMA to accentuate upside.
Support levels - 77.71 (converged 5 & 200 DMA), 77.03 (weekly 50-DMA), 76.80 (20-DMA)
Resistance levels - 78.75 (38.2% Fib of 83.80 to 75.62 fall), 79 (cloud base), 79.71 (50% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bullish Near overbought
4H Bullish Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good to go long on dips around 78, SL: 77.50, TP: 78.75/ 79/ 79.70
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 67.8762 (Neutral), while Hourly JPY Spot Index was at -81.053 (Bearish) at 0550 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
