- NZD/JPY hovers around 61.8% Fib, extends consolidation for 3rd consecutive session.
- The major is on track to halt 8 consecutive weeks of gains, we evidence Doji formation on weekly charts.
- Further the pair has completed a 'Bearish Shark' pattern on daily charts which raises scope for downside. RSI and Stochs are at overbought levels.
- Technical indicators still support upside. Resumption of uptrend will see test of 81.69 (200W SMA).
- Breakout at 81.69 could propel the pair higher. We then see scope for test of 82.23 (78.6% Fib).
- While, on the flipside, retrace below 200-DMA at 79.37 negates bullish bias.
Support levels - 80.70 (5-DMA), 80.50 (trendline), 79.37 (200-DMA)
Resistance levels - 81.70 (200W SMA), 82.23 (78.6% Fib), 82.75 (Sept 21 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 158.702 (Bullish), while Hourly JPY Spot Index was at -44.3528 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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