- NZD/JPY is extending upside after holding major trendline support at 76 levels.
- The pair has broken above 20-DMA at 77.85 and we see scope for further upside.
- Technical studies support further upside in the pair. RSI has retraced from near oversold levels.
- Stochs are biased higher and we see bullish +ve DMI crossover on -ve DMI.
- The pair is on track to test 50-DMA at 79.27 and we see bullish invalidation on retrace below 5-DMA.
- Markets await New Zealand Q4 gross domestic product (GDP), due on March 14 by 21:45GMT for further direction.
Support levels - 77.85 (20-DMA), 77.49 (5-DMA), 77
Resistance levels - 78.65 (55-EMA), 79 (110-EMA), 79.27 (50-DMA), 79.74 (200-DMA)
Recommendation: Good to go long around 77.85/90, SL: 77.40, TP: 78.65/ 79/ 79.30
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 26.0317 (Neutral), while Hourly JPY Spot Index was at -154.619 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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