FxWirePro: NZD/JPY ends 3 consecutive days of gains, 10-DMA caps upside
NZD/JPY remains capped below 10-DMA at 73.64, further upside only on break above. The pair ends 3 consecutive days of gains, and is trading a narrow range on the day. We see scope for downside in the pair. Break below 72…
NZD/JPY remains capped below 10-DMA at 73.64, further upside only on break above.
The pair ends 3 consecutive days of gains, and is trading a narrow range on the day.
We see scope for downside in the pair. Break below 72.75 (5-DMA) could drag the pair to 71.20 levels.
RBNZ released its annual statement of intent on Wednesday in which it reiterated that further easing could still be required.
New Zealand Finance Minister English said Brexit may increase attractiveness of NZ dollar and if things worsen significantly, the RBNZ has room for a rate cut.
On the other hand upbeat data and Brexit related uncertainties likely to keep JPY supported.
Recommendation: Good to sell rallies around 73.50/60, SL: 74, TP: 73/ 72.75/ 72.35/ 72
