FxWirePro: NZD/JPY breaks major trendline support at 76, eyes 61.8% Fib at 74.83

• NZD/JPY has broken major trendline support at 76 levels, we see scope for further downside.
   
• Yen demand on the rise in Asia on heightened trade war angst as China lashes out against US in trade wars.
   
• Reports suggest the Chinese are preparing a raft of duties on US goods targeting key exportation industries in the US economy.
   
• Technical studies for the pair are highly bearish. RSI is below 50 and momentum is bearish.
   
• 20-DMA is pointing south and we see -ve DMI dominance which adds to bearish bias.
   
• Break below major trendline support at 76 raises scope for test of 74.83 (61.8% Fib retracement of 69.232 to 83.910 rally).
   
• On the flipside, 5-DMA at 76.30 is immediate resistance, break above 20-DMA at 77.05 negates bearish bias.

Support levels - 75.62 (April 12 low), 75, 74.83 (61.8% Fib retracement of 69.232 to 83.910 rally)

Resistance levels - 76, 76.30 (5-DMA), 77.05 (20-DMA), 78

Recommendation: Good to go short on rallies around 75.75/76, SL: 76.80, TP: 75/ 74.85/ 74.

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