NZD/JPY long - Major trendline support and Bullish divergence
NZD/JPY holds major trendline support, edges higher to break above 5-DMA at 78.7558.
Bullish divergence noted on RSI and Stochs raises scope for upside in the pair.
20-DMA at 79.20 is immediate resistance on the upside, break above will see further gains.
Scope then for test of 61.8% Fib retrace of 83.809 to 75.626 fall at 80.68. We see bearish invalidation only on close above 200-DMA.
On the flipside, weekly cloud base at 76.52 is next major support below 78. Break below cloud targets 61.8% Fib at 74.83.
Support levels - 78.57 (5-DMA), 78.30 (38.2% Fib retrace 69.232 to 83.901 rally), 78.20 (rising trendline), 77.98 (May 30 low)
Resistance levels - 79.20 (20-DMA), 79.96 (100-DMA), 80.13 (200-DMA)
Good to go long on break above 20-DMA, SL: 78.50, TP: 79.90/ 80/80.10/80.45
Bullish divergence noted on RSI and Stochs raises scope for upside in the pair.
20-DMA at 79.20 is immediate resistance on the upside, break above will see further gains.
Scope then for test of 61.8% Fib retrace of 83.809 to 75.626 fall at 80.68. We see bearish invalidation only on close above 200-DMA.
On the flipside, weekly cloud base at 76.52 is next major support below 78. Break below cloud targets 61.8% Fib at 74.83.
Support levels - 78.57 (5-DMA), 78.30 (38.2% Fib retrace 69.232 to 83.901 rally), 78.20 (rising trendline), 77.98 (May 30 low)
Resistance levels - 79.20 (20-DMA), 79.96 (100-DMA), 80.13 (200-DMA)
Good to go long on break above 20-DMA, SL: 78.50, TP: 79.90/ 80/80.10/80.45
TP1/2/3 hit. Book partial profit at highs.
Raise trailing stop to 79.22. Hold for further gains.