- NZD/JPY is extending grind higher along 5-DMA support at 77.22.
- The pair finds major trendline resistance at 77.70, only decisive breakout to see further upside.
- Better-than-expected Chinese services PMI data and comments by the RBNZ Governor Spencer keep support for the kiwi.
- Technical studies on daily charts are biased higher, RSI and Stochs are biased north, but RSI is below 50 levels.
- The pair trades with a neutral bias on weekly charts, close above 5W SMA at 77.26 could see further upside.
Support levels - 77.25 (nearly converged 5 and 20 DMAs), 77.26 (5W SMA), 77, 76.15 (trendline)
Resistance levels - 77.70 (trendline), 77.93 (23.6% Fib retrace of 83.91 to 76.09 fall), 78.58 (50-DMA)
Recommendation: Good to go long on breakout above 77.70, SL: 77.20, TP: 78/ 78.55/ 79.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 93.5591 (Bullish), while Hourly JPY Spot Index was at 20.231 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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