FxWirePro: NZD/JPY extends recovery from multi-month lows, bias higher

NZD/JPY extending recovery from multi-month lows at 73.65, trades above 5&10 day MAs, close above could see further upside.

• Kiwi was a major beneficiary of improving risk appetite and oil price rebound and movements will be dominated by further oil price action and the markets sentiment on the stocks.
   
• Positive sentiment amid an improved risk environment, with commodities and equities rising see demand for JPY waning.
   
• Daily Stochs have crossed over from oversold levels and so has RSI, bias is definitely higher.
   
• 74.45 (double bottom - June 2013, Sept 2015) strong support for NZD/JPY, close below could see more weakness, declines till 69.30 then look likely.

Resistance Levels:

R1: 77.36 (Session highs)

R2: 77.63 (Jan 11 highs)

R3: 77.96 (Jan 13 highs)

Support Levels:

S1: 76.2370 (10-DMA)

S2: 75.9408 (5-DMA)

S3: 75.255 (Jan 19 lows)