FxWirePro: NZD/JPY on track to test weekly 200-SMA at 82.20, stay long

• NZD/JPY has breached 50-DMA resistance at 80.80, intraday bias bullish.
   
• The pair closed above weekly 20-SMA in the previous week's trade.
   
• We see scope for test of weekly 200-SMA at 82.20. Technical studies on weekly charts are bullish.
   
• RSI is above 50 and biased higher while Stochs are showing rollover from oversold levels.
   
• We notice bullish divergence on daily charts which keeps scope for further upside.
   
• On the downside, 50-DMA is immediate support, break below could see drag upto 20-DMA at 79.37.
   
• Focus on New Zealand Q2 GDP (due Sept 20), along with the GlobalDairyTrade price auction due later today for further direction.
   
• New Zealand general election which will be held on Saturday, September 23 is another major risk event.

Support levels - 80.74 (50-DMA), 80.53 (5-DMA), 80.35 (weekly 20-SMA)

Resistance levels - 81.72 (61.8% Fib retrace of 83.91 to 78.18 fall), 82, 82.20 (weekly 200-SMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-extends-gains-above-200-DMA-at-8012-bias-higher-stay-long-896687) has hit all targets.

Recommendation: Good to go long on dips around 81/81.15, SL: 80.50, TP: 81.65/ 82/ 82.20.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 127.995 (Bullish), while Hourly JPY Spot Index was at -106.007 (Bearish) at 0850 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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