FxWirePro: NZD/JPY breaks below weekly 100-SMA at 77.71, bias lower, stay short

• NZD/JPY has broken below major support at weekly 100-SMA at 77.71, more weakness on cards.
   
• The pair is extending weakness after break below 'Wedge Base' support at 78.90 in a 'Rising Wedge' pattern.
   
• Technical studies on weekly charts are bearish, pair has slipped below 38.2% Fib at 78.30 and now eyes cloud base support at 76.52.
   
• Violation at cloud base to see further downside, scope then for test of 61.8% Fib at 74.84.
   
• On the flipside, we see major resistance at 79.90 (nearly converged 200 & 50-DMA). Bearish invalidation on break above.

Support levels - 77, 76.52 (weekly cloud base), 76.27 (May 18 low)

Resistance levels -77.93 (5-DMA), 78, 78.30 (38.2% Fib retrace of 69.232 to 83.910 rally), 79

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-Wedge-Base-support-at-7890-bias-lower-stay-short-969077) has hit all targets.

Recommendation: Book partial profits, trail stop loss to 78.30, hold for 77/ 76.50.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -107.433 (Bearish), while Hourly JPY Spot Index was at 65.523 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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