FxWirePro: NZD/JPY extends range trade below major trendline resistance at 79, bias neutral

• NZD/JPY extends range trade below major trendline resistance at 79, hovers between 100 and 200 day moving averages.
   
• The latest dairy auction results from Fonterra earlier today showed a drop in the milk prices to +0.6% from +3.2% seen previously.
   
• NZD/JPY largely muted, finds stiff resistance on the upside at 79 levels (major trendline).
   
• Pair is currently struggling to extend gains above 79 handle, further upside only on break above.
   
• 200-DMA at 78.25 is strong support on the downside, break below will see minor weakness.
   
• Trend is higher, but Stochs are at overbought levels and RSI is showing a turn lower, so some caution advised.
   
• We see major long-term reversal only on break below 77.56 (weekly 100-SMA).

Support levels - 78.28 (200-DMA), 78, 77.55 (23.6% Fib of 83.80 to 75.62 fall)

Resistance levels - 78.75 (38.2% Fib), 79 (trendline), 79.47 (Upper BB)

Recommendation: Wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 133.486 (Bullish), while Hourly JPY Spot Index was at 141.657 (Bullish) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.