11 Jun 2013
NZD/JPY advances capped below 78.50
FXstreet.com (Barcelona) - The NZD/JPY closed the day sharply higher, up 173pips at 78.17 but failing to take out initial resistance near the 78.50 area.
From a technical perspective, the sharply higher close had led to the formation of a ‘bullish engulfing candle’ on the daily chart which may help lead to further gains in the coming session. However, it should be noted short term moving averages on the daily chart remain in bearish set up, with price below the downward sloping 9 and 20dma’s. Furthermore, the RSI (14) is also in bearish set up sitting at the 33 level and maintaining the bearish zone between 20 and 60. Given the mixed signals discussed above, the pair may be due for some consolidation in the next few days.
The FXStreet.com Trend Index remains in strongly bearish set up on the daily time frame, while the ob/os index reads neutral. First support sits at 77.27 (the 50dma on 1 hour chart), followed by 76.26 (low of previous day). Initial resistance sits at 78.40 (high of previous day), followed by 79.05 (the 9dma)
From a technical perspective, the sharply higher close had led to the formation of a ‘bullish engulfing candle’ on the daily chart which may help lead to further gains in the coming session. However, it should be noted short term moving averages on the daily chart remain in bearish set up, with price below the downward sloping 9 and 20dma’s. Furthermore, the RSI (14) is also in bearish set up sitting at the 33 level and maintaining the bearish zone between 20 and 60. Given the mixed signals discussed above, the pair may be due for some consolidation in the next few days.
The FXStreet.com Trend Index remains in strongly bearish set up on the daily time frame, while the ob/os index reads neutral. First support sits at 77.27 (the 50dma on 1 hour chart), followed by 76.26 (low of previous day). Initial resistance sits at 78.40 (high of previous day), followed by 79.05 (the 9dma)