- NZD/JPY spikes past 200-DMA at 77.97 to hit fresh highs for the week at 78.33.
- The preliminary Nikkei-Markit PMI data released on Tuesday showed Japanese manufacturing activity in May expanded at a slowest pace in six months.
- Focus remains on annual NZ budget due on Thursday, reaffirmation of NZ’s solid fiscal position will boost NZD.
- Technical indicators have turned bullish, Stochs have bounced-off from near oversold levels and RSI points north.
- Close above 200-DMA will confirm further bullishness, scope for test of 79.20 (trendline).
- Caution advised as 'Death Cross' seen on daily charts, bullish invalidation likely on close below 50-DMA at 77.54.
Support levels - 77.97 (200-DMA), 77.59 (20-DMA), 77, 76.52 (50% Fibo 69.23 to 83.80 rally), 76
Resistance levels - 78.50 (May 16 high), 78.75 (38.2% Fibo 83.80 to 75.62 fall), 79.20 (trendline)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-struggles-at-major-resistance-at-7740-further-upside-likely-on-break-above-714259) has hit TP1.
Recommendation: Book partial profits at highs. Raise trailing stops to 77.55. Hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 104.391 (Bullish), while Hourly JPY Spot Index was at -36.5326 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
