- NZD/JPY extends gains above 5-DMA at 78.66, trades 0.37% higher on the day.
- The pair finds major resistance at 100-DMA at 79.07, break above could see further gains.
- Also, daily Ichimoku cloud weighs heavily on the upside, we see major resistance by cloud base at 78.70.
- Decisive close above cloud base and breakout at 100-DMA will see test of 81.15 (major trendline).
- That said, momentum studies are still bearish, RSI is flatlined below 50-levels and MACD is below zero.
- The pair is consolidating break below 79 handle, we see scope for further weakness on rejection at 100-DMA.
- Next major support on the downside lies at 77.80 (trendline) ahead of 77.26 (78.6% Fib).
Support levels - 78.18 (61.8% Fib), 77.80 (trendline), 77.26 (78.6% Fib)
Resistance levels - 78.70 (cloud base), 79, 79.07 (100-DMA)
Recommendation: Watch out for break out at 100-DMA for bearish invalidation.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
