- NZD/JPY trades with bullish momentum, we see scope for further upside.
- The pair has broken 88.6% Fib retrace of 83.809 to 75.626 fall at 82.87, bias higher.
- The major has pared some gains after hitting fresh 5 month highs of 83.15 and is currently hovering around the 83 handle.
- MACD on the weekly charts is supporting trend higher. The pair has broken above weekly 200-SMA.
- However, caution advised as we see bearish divergence on Stochastics, and RSI and Stochs on daily charts are at overbought levels.
Support levels - 82.87 (88.6% Fib retrace of 83.809 to 75.626), 82.67 (5-DMA), 82.68 (61.8% Fib)
Resistance levels - 83.73 (Dec 15 2016 high), 83.85 (Trendline), 84
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-consolidates-above-618-Fib-bias-higher-good-to-go-long-on-dips-773556) has hit all targets.
Recommendation: Good to go long on dips around 82.85/90, SL: 82.25, TP: 83.45/ 83.85
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 16.9599 (Neutral), while Hourly JPY Spot Index was at -44.3348 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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