- NZD/JPY has retraced losses and edged above 80 handle as antipodeans remain buoyed by solid China services PMI.
- China's Caixin services PMI for December printed at 53.9 beating expectations at 51.8 and compared to 51.9 in the previous month.
- A positive Chinese services PMI print followed the release of upbeat Chinese Caixin manufacturing PMI yesterday, lifted sentiment around the antipodeans.
- Downside in the pair has held above 200-DMA and daily cloud. Price action has edged above 5-DMA.
- Technical indicators are bullishly aligned and we see scope for further upside, 80.60 (falling trendline) is next bull target.
- Breakout at 80.60 could see further gains. While, on the flipside, retrace below 200-DMA at 79.33 negates bullish bias.
Support levels - 79.98 (5-DMA), 79.41 (cloud top), 79.31 (200-DMA)
Resistance levels - 80.65 (Triangle top), 80.92 (61.8% Fib retrace of 83.910 to 76.090 fall), ), 81.72 (200W SMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-rejected-below-5-DMA-on-track-to-test-trendline-resistance-at-8065-stay-long-1077539) is progressing well.
Recommendation: Bias higher, stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 16.2101 (Neutral), while Hourly JPY Spot Index was at -55.2999 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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