FxWirePro: 200-DMA caps upside in NZD/JPY, good to go long on break above

• NZD/JPY is extending range trade, recovering gradually from its Reserve Bank of New Zealand led decline.
   
• Upside in the pair is seen capped by 200-DMA at 80.12 which is stiff resistance.
   
• We see scope for upside on break above. Test of 80.92 (38.2% Fib retrace of 83.910 to 79.081 fall) then likely.
   
• We have noted a 'Bullish Cypher' pattern on daily charts which keeps scope for upside.
   
• July trade data due Wed is the only significant domestic event to watch out for this week.
   
• Analysts expect a slight retrace this month after strong previous quarter. Risks of a larger trade deficit may weigh on NZD sentiment.

Support levels - 79.65 (100-DMA), 79.50 (Aug 18 low), 79 (Aug 15 low)

Resistance levels - 80.12 (200-DMA), 80.60 (Triple top Aug 15, 16, 17), 80.92 (38.2% Fib retrace of 83.910 to 79.081 fall), 81

Recommendation: Good to go long on decisive break above 200-DMA, SL: 79.60, TP: 80.60/ 80.90/ 81

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