- NZD/JPY consolidates previous session's slump, trades narrow range on the day.
- The pair has paused downside at 200-DMA at 80.06 which is strong support.
- We see weakness accentuate on break below 200-DMA. Scope then for test of 78.70 (rising trendline).
- Technical indicators are bearish, Stochs biased lower, RSI below 50 and MACD is showing a bearish crossover.
- The pair is trading a 'Rising Wedge' pattern and close below 200-DMA raises scope for test of Wedge base at 78.70.
- On the flipside, we see bearish invalidation on close above 5-DMA.
Support levels - 80.06 (200-DMA), 79.53 (23.6% Fib), 79, 78.70 (Wedge base)
Resistance levels - 80.33 (50-DMA), 80.61 (5-DMA), 80.89 (20-DMA), 81.09 (cloud top)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-slide-along-5-DMA-bias-lower-good-to-go-short-on-rallies-936286) has hit TP1&2.
Recommendation: Bias lower. Book partial profits at lows, lower trailing stop to 80.65, hold for downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -41.3399 (Neutral), while Hourly JPY Spot Index was at 79.5069 (Slightly bullish) at 0630 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