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)
