- NZD/JPY retraces break above 100-DMA, slips lower from session highs at 79.20.
- The pair trades with a neutral to slightly bullish bias. Breakout at 100-DMA could see further upside.
- Price action has broken into daily Ichimoku cloud. Stochs and RSI are biased higher.
- That said, momentum studies are still bearish, RSI is below 50-levels and MACD is below zero.
- Decisive close above cloud base and breakout at 100-DMA will see test of 81.15 (major trendline).
- Major support on the downside are seen at 77.80 (trendline) ahead of 77.26 (78.6% Fib).
Support levels - 78.70 (converged 5-DMA & cloud base), 78.18 (61.8% Fib), 77.80 (trendline), 77.26 (78.6% Fib)
Resistance levels - 79.47 (38.2% Fib), 79.99 (cloud top), 80.27 (23.6% Fib)
Recommendation: Good to go long on break out at 100-DMA, SL: 78.70, TP: 79.45/ 80/ 80.25.
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