NZDJPY has advanced considerably over the last couple of hours and surged towards the 38.2% Fibonacci retracement level around 78.70 of the downleg from the high of 83.90 to the low of 75.50. When looking at the longer-term picture the price has been developing within a descending tendency since the end of July 2017.
Momentum indicators are pointing to a positive bias in the short-term with the MACD oscillator just above the zero line. The Relative Strength Index (RSI) is aggressively sloping to the upside and is approaching the 70 level, suggesting further gains.
In the event of an upside movement, the market could meet resistance at 79.30 in case of a climb above the 38.2% Fibonacci mark. A successful close above this level could see a retest of the 50.0% Fibonacci level near 79.70. A stronger barrier, though, could be found on the falling trend line.
In the wake of negative pressures, the market could meet support at the 23.6% Fibonacci of 77.50. The next key support to watch lower down is the 40 and then the 20 simple moving averages at 77.34 and 76.97 respectively.
