FxWirePro: NZD/JPY holds above 5-DMA at 81.29, weakness likely on break below

• NZD/JPY hits fresh 4-month highs at 81.90, but has since pared some gains to currently trade at 81.44 levels.
   
• The pair is currently holding support at 5-DMA at 81.29, we see minor weakness on break below.
   
• Downside below 5-DMA could test 80.68 which is 61.8% Fib retrace of 83.809 to 75.626 fall.
   
• Price action is well above 200-DMA and daily cloud, technical indicators are biased higher.
   
• MACD on the weekly charts is showing a bullish crossover on signal line, raising scope for further gains.
   
• Caution advised as we see bearish divergence on Stochastics, and RSI and Stochs on daily charts are at overbought levels.
   

Support levels - 81.28 (5-DMA), 80.68 (61.8% Fib of 83.809 to 75.626 fall), 80.25 (June 21 low)

Resistance levels - 82.05 (78.6% Fib), 82.23 (Weekly 200-SMA), 82.60 (Feb 16 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-consolidates-above-618-Fib-bias-higher-good-to-go-long-on-dips-773556) has hit TP1.

Recommendation: Bias higher, stay long for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -35.6778 (Neutral), while Hourly JPY Spot Index was at -47.8567 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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