FxWirePro: NZD/JPY extends range trade along strong trendline resistance, upside only on breaks above

NZD/JPY upside stalls at strong trendline resistance, pair struggling to extend gains above.

• Disappointing wage negotiation results and recent weakness in Japanese economic data point to a high possibility of additional BOJ easing as early as April.
   
• BOJ Governor Kuroda said on Wednesday that exports and production are showing weakness, and repeated that the BOJ would ease without hesitation if needed.
   
• Earlier in the day, BoJ published the minutes of its Jan meeting, and most members saw heightening risk that global market volatility could hurt business sentiment, delay shift from deflationary mindset.
   
• Many members said it was appropriate to take additional steps to forestall risks.
   
• We see scope for further upside in the pair only on breaks above channel top, tests of 77 levels then likely.
   
• Techs on 4-hourly charts show Stoch are at overbought zone and momentum is slowly fading. Breaks below 75.80 could take the pair lower to 74.70 levels.