Thursday, March 27, 2014
NZD/JPY has maintained a bullish pattern of higher highs and higher lows, this morning hitting new highs. Stochastics are poised to cross higher, which would be confirmed tonight by a close above 88.000. With daily and weekly MACDs above their zero lines, we expect extension of the uptrend to next major resistance at 97.793, the July 2007 high. Any setbacks will be limited in time and extent, with first strong support at 86.331, the March 17 low, which is also the 'last significant corrective low'. We will recommend a new long tonight on a close above 88.00, targeting 97.00, with the stop initially at 86.00.