NZD/JPY claims the 79.00 handle in Tokyo trading

NZD/JPY clambers up to take 79.00.
Kiwi confidence comes on the heels of Yen selling.

Joshua Gibson FXStreet

NZD/JPY is climbing in Tokyo trading, testing into the 79.00 major level as of writing.

The Kiwi is climbing following comments by the incoming head of the Reserve Bank of New Zealand (RBNZ), Adrian Orr. Orr is returning to the post after leaving in 2007 and is expected to maintain the current targets set out by the RBNZ.

Helping the Kiwi climb is the Yen's recent reversal, receding from its high position following threatening language from the Bank of Japan (BoJ) that strongly hinted at the potential for intervention if the Yen doesn't begin to back down.

Japan will see the Industry Activity Index today at 01:10 GMT, where market forecasts are calling for a small contraction in the numbers, anticipating a reading of 0.5% over the previous period's 1.0%. Later today will also see foreign investment numbers in both stocks and bonds for Japan, slated for 23:50.

NZD/JPY Technicals

The pair seems to have found a bottom following the bounce from 77.63, and the price is now pushing upwards towards the 34 EMA at 79.38 and the 200-day SMA sitting near 79.77. With the pair breaking the 79.00 major level, the challenge will now be to hold onto this area confidently, with support priced in at yesterday's high of 78.93, with further support from 78.80 and 78.44, while resistance is priced in from 79.30 and 79.58.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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