01.07.201602:52:00UTC+00Fxwirepro: Nzd/jpy Ends 3 Consecutive Days of Gains, 10-Dma Caps Upside

• NZD/JPY remains capped below 10-DMA at 73.64, further upside only on break above.
   
• The pair ends 3 consecutive days of gains, and is trading a narrow range on the day.
   
• We see scope for downside in the pair. Break below 72.75 (5-DMA) could drag the pair to 71.20 levels.
   
• RBNZ released its annual statement of intent on Wednesday in which it reiterated that further easing could still be required.
   
• New Zealand Finance Minister English said Brexit may increase attractiveness of NZ dollar and if things worsen significantly, the RBNZ has room for a rate cut.
   
• On the other hand upbeat data and Brexit related uncertainties likely to keep JPY supported.
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Recommendation: Good to sell rallies around 73.50/60, SL: 74, TP: 73/ 72.75/ 72.35/ 72