FXWIREPRO: NZD/JPY Finds Strong Support at 72.80, Momentum Bearish
- NZD/JPY has taken strong trendline support at 72.89 on Apr 7th trade and edged higher.
- The pair currently trades around 73.65 levels, Doji formation seen in the Asian session after the pair was rejected at highs by 74.21 on Friday's trade.
- Momentum is still with the bears, downside upto 72.80 (trendline support) seen, further weakness only on breaks below.
- NZ data calendar has nothing major this week, with electronic retail spending and REINZ house sales and prices (Mon), Wed sees food prices, and Thu has manufacturing PMI.
- For JPY, concerns are on the rise over intervention risk, but this is politically difficult ahead of the G7 meeting scheduled next month.
- Immediate support and resistance for the pair are located at 73.20 (Apr 8th lows) and 74.07 (5-DMA) respectively.
- Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-strong-support-at-7425-targets-7355-190849) has hit all targets.
Recommendation: Book partial profits, lower trailing stops to 74.10, target 72.80/72.40
The material has been provided by InstaForex Company - www.instaforex.com