NZD/JPY may rise 55 - 81 pips

88.37 is our pivot point.

Our preference

The upside prevails as long as 88.37 is support.

Alternative scenario

The downside breakout of 88.37 would call for 87.94 and 87.68.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 88.39 and 88.30). Finally, the NZD/JPY has crossed above its upper Bollinger band (88.77).

Supports and resistances

90.11 **

89.85 *

89.59 **

89.33

88.78 last

88.54

88.37 **

87.94 *

87.68 **

Number of asterisks represents the strength of support and resistance levels.