Renewed weakness in NZ dairy prices overnight (GDT-TWI down 2.9%) kept the Kiwi weak. NZD/JPY tested lows of 74.43.
Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-sees-strong-support-at-7535-weakness-only-on-breaks-below-178458) has achieved targets.
Yen weakness across the board is keeping the pair from extending downside, NZD/JPY has pared losses and is currently trading at 74.88.
On the 2 hourly charts, the pair is seen holding minor support at 74.43, weakness could resume on break below.
Momentum has turned positive, RSI and Stocha have rolled over from oversold territory and MACD line is on the verge of a bullish crossover on signal line.
Immediate support and resistance are aligned at 74.45 (trendline) and 75.50 (Jan 20th highs) respectively.
Recommendation: Good to buy dips around 74.75/80, SL: 74.40, TP: 75.15/75.45
