The New Zealand Dollar (NZD) is continuing its slow and steady uptrend against the Japanese Yen (JPY), with the price approaching the 82.00 resistance area. The technical bias however remains negative due to a Lower Low in the recent wave on daily chart.
As of this writing, the pair is being traded around 81.57. A support may be seen near 80.97, the low of the bullish pin bar which emerged last week on daily chart ahead of 80.45 which is the swing low of the last major dip as demonstrated in the following daily chart. A break and daily closing below the 80.45 support area could incite renewed selling pressure, validating a move towards the 75.00 support area in the long run.
On the upside, the pair is likely to face a hurdle around 82.67, the 23.6% fib level ahead of 84.05, the 38.2% fib level and then 89.87, the swing high of the last major upside rally. The technical bias will remain bearish as long as the 83.26 resistance area is intact.
Nomura/JMMA Manufacturing PMI
The Nomura/JMMA Manufacturing PMI was released today during the early Asian session. According to the report, the manufacturing activity in Japan remained 51.9 points in August as compared to 51.2 points in the month before, down beating the average forecast of 52.1 points. Generally speaking, a reading above 50 shows expansion in the manufacturing activity and vice versa. The downbeat PMI reading may help NZDJPY continue the ongoing bullish momentum.
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term if we get a valid bullish pin bar or bullish engulfing candle.