- NZD/JPY breaks below 5-DMA after being rejected at major trendline resistance at 77.50.
- The pair is trading in a downward trend in a falling triangle pattern.
- Technical studies on daily charts are neutral, and the pair trades with a neutral bias on weekly charts.
- Close above 77.50 could see further upside, while close below 5-DMA at 77.21 raises scope for downside.
- Next major support below 77 handle lies at 76.57 (50% Fib retrace of 69.232 to 83.910 rally).
Support levels - 76.57 (50% Fib retrace of 69.232 to 83.910 rally), 76 (trendline support), 75.62 (Apr 12 low)
Resistance levels - 77.50 (trendline), 77.93 (23.6% Fib retrace of 83.91 to 76.09 fall), 78.50 (50-DMA)
Recommendation: Watch out for close below 5-DMA to go short, target 76.60/ 76/ 75.70.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 20.2901 (Neutral), while Hourly JPY Spot Index was at 104.088 (Bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest