• NZD/JPY steadied on Thursday as China optimism continued support risk-sensitive kiwi dollar.
• On Wednesday, China’s central bank cut medium-term loan costs for banks, following plans to lower borrowing costs, inject more funds into the economy, and ease households' mortgage burdens.
• Also boosting sentiment, News reported earlier that China is contemplating a capital injection of up to 1 trillion yuan into its largest state banks to enhance their ability to support the economy.
• The technical outlook remains bullish and points to eventual bigger gains, Fourteen-day momentum is positive, reinforcing the scope for a bigger gains .
• Immediate resistance is located at 91.46(23.6%fib), any close above will push the pair towards 91.96 (Higher BB).
• Support is seen at 89.89 (38.2%fib) and break below could take the pair towards 89.00(Psychological level).
Recommendation: Good to buy around 90.80 with stop loss of 90.20 and target price of 91.50
