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FxWirePro: NZD/JPY struggles at major trendline resistance at 79, break below 200-DMA could see minor weakness

  • 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.

 

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