- Kiwi buoyed after RBNZ’s preferred measure of core inflation hit a 7-year high.
- Data released earlier today showed NZ Q2 CPI data that arrived at 0.4% and slightly lower than the 0.5% expected.
- RBNZ’s preferred measure of core inflation for the second quarter printed at a 7-year high of 1.7% year-on-year.
- NZD/JPY has spiked past 55-EMA at 76.21, trades 0.95% higher on the day.
- Price is testing 110-EMA at 76.86, break above will see further upside. Scope then for test of major trendline resistance at 77.10.
- On the flipside, break below 55-EMA could negate bullish bias.
Support levels - 76.21 (55-EMA), 76.16 (5-DMA), 75.83 (21-EMA), 75.54 (Mar 23 low)
Resistance levels - 76.86 (110-EMA), 77.20 (Trendline), 77.87 (June 13 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-hovers-around-55-EMA-good-to-go-long-on-break-above-1403793) has hit TP1.
Recommendation: Watch out for break above 110-EMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 81.21 (Bullish), while Hourly JPY Spot Index was at -123.993 (Bearish) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
