- NZD/JPY extends range trade between 100 and 200 day moving averages.
- The pair finds stiff resistance on the upside and is currently struggling to extend gains above 79 handle.
- 200-DMA at 78.25 is strong support on the downside, break below will see minor weakness.
- Stochs are at overbought levels and RSI is showing a turn lower.
- Japan’s labor cash earnings were reported at a four-month high, thus strengthening bid tone around the Yen.
- Trend is higher, major long-term reversal only on break below 77.56 (weekly 100-SMA).
Support levels - 78.25 (200-DMA), 78.20 (20-DMA), 78
Resistance levels - 78.66 (5-DMA), 79 (trendline), 79.47 (Upper BB)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 91.5837 (Bullish), while Hourly JPY Spot Index was at 143.418 (Bullish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
