FxWirePro: NZD/JPY capped below daily cloud, bias lower, stay short

• NZD/JPY closed the bearish gap and edged higher to session highs at 78.68.
   
• Daily Ichimoku cloud weighs heavily on the upside, we see major resistance by cloud base at 78.70.
   
• Momentum studies are still bearish, RSI is flat-lined below 50-levels and MACD is below zero.
   
• The pair is consolidating break below 79 handle, we see scope for further weakness.
   
• Technical studies also support weakness. RSI and Stochs nicely converging with price action.
   
• Next major support on the downside lies at 77.75 (trendline) ahead of 77.26 (78.6% Fib).

Support levels - 78.18 (61.8% Fib), 77.75 (trendline), 77.26 (78.6% Fib)

Resistance levels - 78.70 (cloud base), 79, 79.10 (100-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-capped-below-5-DMA-at-7916-minor-upside-like-on-break-above-1144641) is progressing well.

Recommendation: We recommend holding for further downside.   

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