FxWirePro: NZD/JPY extends gains above 200-DMA, bias higher, stay long

• NZD/JPY closed above 200-DMA on Monday's trade and is currently holding above 78 handle.
   
• Oil rally continues buoying sentiment around the resource-linked kiwi, WTI edges higher to $46.50, API report in focus.
   
• Cautious remains over growing concerns of slowing demand and a relentless rise in US crude output.
• Rise in U.S. crude output likely to counter efforts by other major producers to rebalance global oil supply and demand.
   
• Risk-on seen in the markets following Macron's victory in French elections weighing on JPY a further boost to the major.
   
• On the weekly charts, the pair has broken above 50-SMA and is attempting a break above 100-SMA at 77.78.
   
• Technical studies are biased higher. Weekly cloud offers strong support. Close above weekly 100-SMA to accentuate upside.

Support levels - 77.71 (converged 5 & 200 DMA), 77.03 (weekly 50-DMA), 76.80 (20-DMA)

Resistance levels - 78.75 (38.2% Fib of 83.80 to 75.62 fall), 79 (cloud base), 79.71 (50% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-holds-break-above-200-DMA-at-7771-good-to-go-long-on-dips-685237) is progressing well

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 32.9976 (Neutral), while Hourly JPY Spot Index was at -105.359 (Bearish) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.