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Forex: NZD/JPY continues to consolidate in tight range on daily chart

FXstreet.com (Barcelona) - The NZD/JPY traded in a very narrow range for a third day in a row, closing down 8 pips at 83.89. NZD Business PMI was released a bit earlier in the session at 22:30GMT, coming in at 54.5 actual vs. the previous print of 53.4. The data did not seem to have much influence on the pair, which is currently edging higher in Asia trade at 84.34. On a final note, we will also see the NZD Budget release due out later at 2:00GMT.

According to analysts at FXStreet.com, “The price activity in recent weeks might be starting to provide some hints as to what force is more likely to raise victorious out of the 1-month long range. In this case, the bulls appear to have gotten the upper hand as a structure of higher highs and higher lows on the daily/H4 continues well on course to squeeze short players protecting the 85.00 round number."

They went on to add, “Other additional technical traits suggesting that buyers may soon give a go to further upside quotes is the fact that price has built a relationship with the 20-day ema by avoiding any close below the indicator. Besides, any potential upside resolution comes within the context of a well established bullish trend, which always adds weight to the play.”

The FXStreet.com Trend Index remains in slightly bullish set up, while the OB/OS Index remains neutral. Short term moving averages on the daily chart are also in bullish set up, with price consolidating just above both the 9 and 20 dma. Keep an eye on the short term downtrend resistance line around 84.55 which has continued to cap advances over the past few weeks. Furthermore, it will be important to monitor the 83.50 support level which is a short term uptrend line that has held on numerous occasions starting back in early April.

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