NZD/JPY Prices Analysis: Crosses seven-week-old hurdle on RBNZ rate hike, 78.00 eyed
- NZD/JPY takes the bids to refresh a two-week high as RBNZ increases the benchmark rate by 0.25%.
- A clear break of trendline, 61.8% Fibonacci retracement joins bullish MACD signal to favor buyers.
- Monthly resistance tests immediate upside, key SMA will act as additional downside filters in case of fresh declines.
NZD/JPY extends the previous day’s rebound from a one-week low while refreshing a fortnight high around 77.85, up 0.50% intraday during Wednesday’s Asian session.
The cross-currency pair’s latest advances could be linked to the Reserve Bank of New Zealand’s (RBNZ) rate hike. That said, the New Zealand central bank matched market forecasts of a 0.25% increase in its benchmark rate to 1.0%, marking it the third consecutive hawkish play.
Read: Breaking: RBNZ hikes by 25bps, NZD/USD attempts to break 0.6750
Following the RBNZ showdown, NZD/JPY crossed a downward sloping trend line from early January, as well as the 61.8% Fibonacci retracement (FIbo.) of the last month’s south-run.
The breakout of previously crucial resistance levels also gains support from the bullish MACD signals to suggest the quote’s further advances.
However, the monthly high of 78.00 challenges the intraday buyers ahead of directing them to the mid-January’s top near 78.85, a break of which will recall the last month’s peak of 79.25 on the chart.
Meanwhile, pullback moves may initially aim for the 61.8% Fibo. and the resistance-turned-support line, respectively around 77.70 and 77.60.
Following that, the 200-SMA and 100-SMA will challenge the NZD/JPY bears near 76.90 and 76.70 in that order.
NZD/JPY: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
