FxWirePro: NZD/JPY tests 200W SMA, decisive break above to see further upside

NZD/JPY chart on Trading View used for analysis

• NZD/JPY consolidates bullish gap open on Monday's trade, bias higher.
   
• The pair has tested major resistance at 200W SMA at 78.80, break above will propel the pair higher.
   
• Technical studies are supporting scope for gains. We see bullish divergence on Stochs.
   
• MACD and DMI support upside and Bollinger Bands are widening suggesting rising volatility.
   
• Break above 200W SMA raises scope for test of 83.90 (Major trendline resistance).
   
• On the flipside, 5-DMA is immediate support at 77.94. Break below eyes 21-EMA at 76.90

Support levels - 78.24 (5-DMA), 77.06 (21-EMA), 75.74 (200-DMA)

Resistance levels - 78.80 (200-W SMA), 83.90 (trendline)

Recommendation: Watch out for decisive breakout at 200W SMA to go long. 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.