NZD/JPY – trims gains, back below 50-DMA

NZD/JPY cross backed off from the session high of 94.325 on the back of profit taking on the NZD longs post RBNZ rate cut.

Trades around 73.65

At 73.65 levels, the cross is trading below 50-DMA level of 73.99 levels. Kiwi spiked as the yield differential remained in favor of the NZD despite a 25 basis point RBNZ rate cut.

With Tokyo closed on account of trading holiday, the cross remains at the mercy of the action in the NZD/USD pair. Comments from RBNZ governor Wheeler failed to trigger fresh buying interest in the NZD.

NZD/JPY Technical Levels

A break above immediate resistance at 73.99 (50-DMA) could yield a test of 74.45 (100-DMA). Further gains could run into hurdle at 75.07 (July 19 high). On the other hand, a breakdown of support at 73.44 (previous day’s high) would open doors for a test of support at 72.89 (daily low) and 72.21 (Aug 3 low).