- NZD/JPY extends bullish momentum into 7 consecutive week, hits fresh 2-month highs at 81.06.
- The pair has shown a decisive break at major trendline resistance at 80.60.
- Technical indicators are bullishly aligned and we see scope for further upside. 81.72 (200W SMA) is next bull target.
- Breakout at 81.72 could propel the pair higher. We then see scope for test of 82.23 (78.6% Fib).
- While, on the flipside, retrace below 200-DMA at 79.34 negates bullish bias.
Support levels - 80.60 (triangle top), 80.22 (5-DMA), 79.34 (200-DMA)
Resistance levels - 81.72 (200W SMA), 82.23 (78.6% Fib), 82.75 (Sept 21 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-rejected-below-5-DMA-on-track-to-test-trendline-resistance-at-8065-stay-long-1077539) has hit TP1/2.
Recommendation: Book partial profits, trail stop loss to 80.60, stay long for 81.70/ 82/ 82.25.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 113.911 (Bullish), while Hourly JPY Spot Index was at -130.223 (Bearish) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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