NZD/JPY pair should head towards the next resistance at 83.40 - Natixis

Research Team at Natixis suggests that the NZD/JPY outlook remains favourable, as an ascending channel remains in evidence in the daily chart and an upward bubble is still developing in the weekly chart.

Key Quotes

“Under these conditions, the pair should head towards the next resistance at 83.40 (upper bound of descending channel in place since December 2014).”

“A breakout above this resistance would instil new upward momentum, opening the way for a lasting rebound towards 84.70 (61.8% Fibonacci retracement of 94.08-69.04 downward wave from December 2014 to June 2016) before 86.30 (upper band of monthly Bollinger).”

“Take advantage of any pullbacks towards 80.70 to buy the NZD/JPY, with as major target 86.30 (setting the stop loss below 79.40).”