NZD/JPY bites the dust? Gains wiped out, back below 78.00 zone

FXstreet.com (Chicago) - NZD/JPY was capped at 78.00 zone (session highs) after apparent bullish rally exhaustion to retrace 23.20% and find grounds at 77.50 (Fibonacci support) since last week’s bounce from 75.74 lows.

When beginnings are ends

With no major NZ data due today, market participants expect the BoJ press conference and foreign bond investment tomorrow. Price action reveals the end of a bullish rally at the start of the third day of September on GMT time that coincided with the reach of the summit at 78.00. Despite a weaker yen across the board after the “safe-haven mentality” seems to end in regards to the Syrian concern, the world waits for the US congress decision to strike Syria.

NZD/JPY Technical Levels

Trading at 77.58, the pair navigates between supports at 77.38 (August 22nd highs), 77.17 (August 25th highs) ahead of 76.87 (August 21st lows) and resistances at 77.82 (August 19th lows), 78.05 (session highs) followed by 78.31 (August 16th lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and is offered above the EMA20.