FxWirePro: NZD/JPY tests cloud resistane, decisive break above to fuel further gains

NZD/JPY chart - Trading View 

NZD/JPY was trading 0.51% higher on the day at 70.231 at around 06:00 GMT, bias is turning bullish.

The pair is testing daily cloud resistance, decisive break above will fuel further gains. Kiwi buoyed after upbeat data from New Zealand keeps trading sentiment positive. 

The Reserve Bank of New Zealand’s (RBNZ) Inflation Expectations crossed the previous 1.43% mark to 1.59% QoQ for the fourth quarter (Q4) of 2020.

Upbeat data reduces the odds of any rate cuts from the New Zealand central bank (RBNZ) during the next week's meeting.

Technical bias for the pair is bullish. Stochs and RSI are biased higher. Price action has held above 200-DMA support.

If price manages to close above daily cloud, further upside likely. Scope for test of major trendline resistance at 71.65.

Support levels - 69.82 (55-EMA), 69.56 (110-EMA), 69.12 (Lower BB)

Resistance levels - 70.34 (Upper BB), 70.98 (110W EMA), 71.65 (Trendline resistance)