NZD/JPY consolidates above 82.20 zone; around 16-week highs

FXstreet.com (Chicago) - NZD/JPY sustains yesterday’s gains obtained on the rally triggered by the FOMC results in the United States. The pair accumulates 0.40% gains against a weaker yen dragged by a stronger Nikkei on Fed’s tapering outcome.

Weakening yen

Price action reveals a steep upward trendline that is extended by a stronger kiwi beating a weaker yen on GDP results that outperformed estimates. NZ GDP was 2.5% (YoY) vs. past 2.4% and projections at 2.1%. Monthly results were 0.2% vs. estimates at 0.1%. In Japan, the Nikkei trades + 0.72% on tapering and market participants wait for BoJ Governor Kuroda speech scheduled later in the day.

NZD/JPY Technical Levels

Price action reveals a pair that maintains the 82.20 zone to trade at 82.25 between supports aligned at 81.94 (September 17th highs), 81.66 (May 28th lows) ahead of 81.34 (September 12th highs) and resistances set at 82.67 (May 30th highs), 83 (May 28th highs) followed by 83.43 (May 15th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and remains above the EMA20. Marking higher highs and lows, the short-term trend matches the secondary and primary trend rhythm. Although capped at 82.49, fluctuations continue around 4-month highs.

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